GBP/USDgave back some of its recent gains prompting the emergence of a Hanging Man formation on the daily. However, the reversal pattern has failed to find follow-through given the strong buying support at the prior breakout point at 1.6870. With a reversal signal now seemingly lacking, the pair may be primed to push towards its August 2009 high at 1.7040.
GBP/USD: Buyers Emerge Near Key Support
Daily Chart - Created Using FXCM Marketscope 2.0
Intraday price action on the four hour chart suggests sellers are likely sitting at the 1.6990 handle. This is made evident by a Doji formation and suggests longs may be better served on a break higher.
GBP/USD: Rally Stalls At 1.6990
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.