- GBP/USD Technical Strategy: Sidelines Preferred
- Piercing Line Pattern May Find Limited Follow-Though
- Climb Over 1.6660 Needed To Suggest A Small Base
GBP/USD continues its grind higher after the emergence of a Piercing Line pattern on the daily. Yet the bullish reversal pattern may struggle to yield a sustained recovery against the backdrop of a core downtrend. This leaves selling into rallies preferred at this point. A daily close above 1.6660 would be required to warn of a small base and the potential for an uptrend to arise.
GBP/USD: Piercing Line Pattern May See Limited Follow-Through
The narrow range evident on the four hour chart appears to have finally broken following the push above the 1.6603 ceiling. This opens the gate to a walk towards the 1.6660 barrier. Based on the backdrop from the daily selling into corrective bounces would be preferred if a bearish reversal pattern emerges.
GBP/USD: Awaiting Bearish Signals Near 1.6660
By David de Ferranti, Currency 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.