GBP/USD Bounce Sees Morning Star Candlestick Formation Emerge
- GBP/USD Technical Strategy: Sidelines Preferred
- Morning Staremerges as bulls return
- Overhanging resistance may limit gains
GBP/USD’s recent recovery back above the 1.7000 handle has yielded a Morning Star formation on the daily chart. While the candlestick formation offers a bullish reversal signal, further gains may be limited by overhanging resistance at 1.7040.
GBP/USD: Morning Star Emerges As Bulls Return
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; a Hammer pattern heralded the return of the bulls. With a Doji having now emerged, the pair may have lost steam near the 1.7040/60 mark. A pullback in intraday trade would likely be met by buyers at the 1.7000 handle.
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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