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GBP/USD Cautious Advance Continues Following Bullish Pattern

GBP/USD Cautious Advance Continues Following Bullish Pattern

David de Ferranti, Currency Analyst

Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Bullish Reversal Signal Finds Confirmation
  • Doji On H4 Signals Indecision In Intraday Trade

GBP/USD continues its cautious recovery following the appearance of a Piercing Line pattern near its recent lows. Yet recent reversal patterns have seen a limited response from traders. Alongside a core downtrend some skepticism over further advance 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 Cautious Advance Continues Following Bullish Pattern

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 Doji formation near 1.6130 suggests reluctance from the bulls to lead the pair higher. Yet an absence of classic reversal signals leaves a pullback as questionable over the session ahead.

GBP/USD: Doji Highlights Hesitation In Intraday Trade

GBP/USD Cautious Advance Continues Following Bullish Pattern

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

By David de Ferranti, Currency Analyst, DailyFX

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