GBP/USD Morning Star To Hint At A 'Corrective Bounce'
- GBP/USD Technical Strategy: Sidelines Preferred
- Morning Star Pattern To Hint At A Bounce If Confirmed
- Sustained Recovery Questionable Amid Broader Downtrend
GBP/USD’s rebound has yielded a Morning Star formation, which offers a glimmer of hope for the Pound bulls. The key reversal pattern awaits confirmation from a successive up-day, which if received could raise the possibility of a bounce towards the 1.6450 mark. Yet some skepticism over the potential for shift in sentiment may be warranted, given several failed attempts by the pair to stage a recovery over recent weeks.
GBP/USD: Morning Star Awaiting Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart offered an early hint at a bounce for the Pound. The Bullish Engulfing formation and climb over 1.6153 suggested an intraday recovery for the pair. Amid a void of bearish signals the spotlight is cast on the 1.6290 ceiling.
GBP/USD: Bullish Engulfing Pattern Hinted At An Intraday Recovery
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.