Talking Points
- GBP/USD Technical Strategy: Longs Preferred
- Morning Starsuggests potential for further gains
- Bearish patterns remain absent on the daily
GBP/USD’s promises a further push higher following a Morning Star formation on the daily. With current levels not witnessed since 2008, definitive areas of resistance are not easily identifiable. This suggests traders may defer to psychologically-significant handles to look at taking profits and puts 1.7200 on the radar.
GBP/USD: Morning Star Heralded Upside Breakout
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; a Dark Cloud Cover pattern had hinted at a reversal in intraday trade, yet failed to find follow-through. This suggests the bulls remain in control and creates doubt over a potential pullback.
GBP/USD: Dark Cloud Cover Finds Little Follow-Through
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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