GBP/USD Creeps Towards 1.6170 Ceiling Following Bullish Signal
- GBP/USD Technical Strategy: Sidelines Preferred
- Morning Star May Find Limited Follow-Through
- Dark Cloud Cover Awaiting Confirmation On H4
GBP/USD has edged upwards in recent trade following the emergence of a Morning Star pattern. Although a bullish signal, the potential for a sustained advance may be limited given recent reversal formations 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.
GBP/USD: Morning Star May Have Limited Scope For Follow-Through
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart deserves close attention over the session ahead. A Dark Cloud Cover pattern is awaiting validation near the 1.6130 ceiling. Confirmation from a successive down-period would warn of a pullback towards the 1.6000 handle.
GBP/USD: Dark Cloud Cover Rolls In Near Intraday Ceiling
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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