GBP/USD Morning Star May Have Limited Scope For Follow-Through
- GBP/USD Technical Strategy: Sidelines Preferred
- Morning Star May Find Limited Follow-Through
- H4 Suggests Cautious Approach By The Bulls
GBP/USD’s recovery has generated a Morning Star formation which awaits validation from an ensuing up-session. Although a bullish signal, the potential for a sustained advance may be limited given recent reversal patterns have found limited follow-through. A daily close above 1.6170 would be required to open the potential for a run on the recent 1.6400 peak.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart offered an early hint at a potential reversal for the Sterling in the form of a Harami pattern. The string of recent short-body sessions suggests a cautious return by the bulls rather than a stampede. Yet an absence of bearish reversal signals leaves a correction over the session ahead as questionable.
GBP/USD: Short Body Candles Suggests Cautious Approach By Traders
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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