Talking Points
- GBP/USD Technical Strategy: Sidelines Preferred
- Void of Bearish Patterns May Open Further Gains
- 1.6450 Mark On The Cards Following Climb Over 1.6270
GBP/USD has resumed is ascent in recent trading with an absence of bearish candlesticks bolstering hopes for a continued recovery. The climb above the 1.6270 hurdle suggests a small base may have formed which opens the prospect of a recovery to 1.6450. Yet some skepticism over a sustained recovery may be warranted given the pair remains within the broader context of a downtrend on the daily.
Traders should note the upcoming Scottish Independence Vote holds the potential to spark significant volatility for the Pound, which may negate technical signals offered.
GBP/USD: Eyes Further Gains With A Morning Star In Its Wake
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Choppy price action alongside a pair of Dojis in intraday trade indicates indecision amongst traders. While selling pressure remains evident at the 1.6340 barrier, a void of bearish patterns does little to suggest a correction.
GBP/USD: Dojis Denote Indecision Near Intraday Resistance
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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