GBP/USD Set To Post Bullish Engulfing Pattern As Recovery Continues
- GBP/USD Technical Strategy: Pending Long
- Bullish reversal pattern forming on the daily chart
- Bearish formations absent in intraday trade
GBP/USD’s recovery is set to yield a Bullish Engulfing pattern on the daily chart if the current candle manages to close near present levels. The key reversal pattern would suggest a run on the recent highs at 1.7170 and be the first step towards an upside breakout.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart; several Doji formations near 1.7060 denoted hesitation from traders to push past the key technical level. With bearish patterns absent in intraday trade at this stage a pullback for the Pound looks doubtful.
GBP/USD: Bearish Patterns Absent In Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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