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GBP/USD Candlestick Analysis: Bottom Set Above 1.45 Figure?

GBP/USD Candlestick Analysis: Bottom Set Above 1.45 Figure?

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Talking Points:

  • GBP/USD Strategy: Flat
  • Candle Setup Hints at Pound Gains Ahead
  • Confirmation of Upturn Pending for Now

The British Pound may be preparing to move higher against the US Dollar following the appearance of a Bullish Engulfing candlestick pattern. Positive RSI divergence bolsters the case for an upside scenario. A break above the 14.6% Fibonacci retracement at 1.4948 exposes the 23.6% level at 1.5185. Alternatively, a turn below the 23.6% Fib expansion at 1.4561 targets the 38.2% threshold at 1.4188.

Confirmation of reversal is absent for the time being. Furthermore, the dominant GBPUSD trend continues to look bearish, suggesting any move higher is likely to be corrective in the context of a longer-term decline rather than mark a structural reversal.

Weekly Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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