GBP/USD Harami Hints At Intraday Bounce To Key Resistance
- GBP/USD Technical Strategy: Sidelines Preferred
- Hanging Man warns of fading conviction from the bulls
- Haramipattern highlights potential for intraday bounce
GBP/USD is at a crossroads after a Hanging Man formation offered a reversal signal near noteworthy resistance at 1.7170. While the candlestick failed to find confirmation from a successive down period, it signifies hesitation from the bulls near the key resistance level.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart; the presence of GBP/USD’s recent range is more pronounced. The bounce off support at 1.7100 which yielded a Harami pattern may leave the pair primed for another run on the 1.7170 top.
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency 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.