GBP/USD Recovery Regains Traction With Bullish Pattern Left Near Lows
- GBP/USD Technical Strategy: Sidelines Preferred
- Piercing Ling Pattern Signaled A Shift In Sentiment
- Bullish Engulfing Formation Heralded Intraday Gains
GBP/USD has managed to regain some momentum after a Piercing Line pattern was left in its wake. While initially met with little fanfare the reversal signal suggests the bears are in retreat. A more convincing close above the 1.6170 barrier may open the 1.6400 ceiling.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Bullish Engulfing formation on the four hour chart suggested an intraday shift in sentiment for the Sterling. A lack of bearish reversal candlesticks casts some doubt over the potential for a correction over the session ahead.
GBP/USD: Bullish Engulfing Formation Emerges Near 1.6060 Floor
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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