GBP/USD At A Critical Juncture Near Key Resistance
- GBP/USD Technical Strategy: Sidelines Preferred
- Run on 2014 high near 1.7000 test bulls’ resolve
- Shooting Star on four hour chart may offer early warning
GBP/USDis at a critical juncture as the pair teases at a breakout above the psychologically-significant 1.7000 handle. While a Doji appears to be forming on the daily, it may not be sufficient to suggest a correction at this stage. A close of the candle and successive down session would help offer a signal of a pullback. Conversely, a daily close above 1.7000 would suggest enough conviction amongst the bulls to make a run higher and open the next psychologically-significant level at 1.7100.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart, a Shooting Star formation may be an early warning for GBP/USD. The pattern awaits confirmation from a second down-period, which could prompt a pullback towards 1.6900.
GBP/USD: Shooting Star May Offer Early Warning
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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