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GBP/USD Bounce Produces Piercing Line Pattern Near 1.5880 Floor

GBP/USD Bounce Produces Piercing Line Pattern Near 1.5880 Floor

2014-10-16 06:25:00
David de Ferranti, Currency Analyst
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Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Bullish Reversal Signal Awaiting Confirmation
  • Harami Pattern On H4 Halts Intraday Advance

GBP/USD’s bounce from the 1.5880 floor has produced a Piercing Line pattern. Yet recent reversal patterns have seen a limited response from traders. Alongside a core downtrend some skepticism over a recovery may be warranted. Selling interest is likely to be renewed at the 1.6170 ceiling. While a daily close below 1.5880 would potentially open the way for a descent towards the mid-September 2013 low near 1.5770.

GBP/USD: Bullish Signal Emerges At Key Support

GBP/USD Bounce Produces Piercing Line Pattern Near 1.5880 Floor

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

The four hour may already be warning of fading upside momentum for the Pound. A Harami formation near 1.6025 is awaiting confirmation from a successive down-period, which if received, may herald a retreat to the recent lows near 1.5880.

GBP/USD: Recovery Halted By Harami Near 1.6025

GBP/USD Bounce Produces Piercing Line Pattern Near 1.5880 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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