GBP/USD To Extend Gains On Bullish Candlestick Formation
- GBP/USD Technical Strategy: Longs Preferred
- Morning Starsuggests potential for further gains
- Bearish patterns remain absent on the daily
A push higher for the Pound looks promising following a Morning Star formation on the daily. Similarly, we have not seen a spike in retail trading volume, which often indicates a potential reversal. With recent 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, Volume Indicator Available Here
Drilling down to the four hour chart; a Bearish Engulfing pattern has found little follow-through in Asian trading, suggesting the bulls remain in control for the time-being. A break above 1.7170 would open the 1.7200 handle.
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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