News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Forex Strategy: GBP/USD Advances Further Post Hammer Candle

Forex Strategy: GBP/USD Advances Further Post Hammer Candle

David de Ferranti, Currency Analyst

Talking Points

  • GBP/USD Technical Strategy: Pending Long
  • Hammer formation helped signal bounce
  • Daily close above resistance to open further gains

GBP/USD continues its ascent following the Hammer formation on the daily which suggested a shift in sentiment for the pair near 1.6760. While there are some signs of hesitation amongst traders at the psychologically-significant 1.6900 handle, a bearish reversal signal is yet to emerge. A daily close above 1.6900 would suggest the bulls remain in control of prices, and would open up a re-test of the 2014 high near 1.7000.

GBP/USD: Close Above 1.6900 To Open Advance On 2014 High

Forex Strategy: GBP/USD Advances Further Post Hammer Candle

Daily Chart - Created Using FXCM Marketscope 2.0

Examining intraday price action; the Harami near 1.6900 has failed to find much follow-through. With prices probing above 1.6900 a bearish candlestick pattern is notably absent. This suggests gains may be set to continue over the session ahead.

GBP/USD: Harami Finds Little Follow-Through As Prices Probe Above 1.6900

Forex Strategy: GBP/USD Advances Further Post Hammer Candle

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, DailyFX

Follow David on Twitter: @Davidde

To receive David’s analysis directly via email, please sign up here.

Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES