GBP/USD Key Reversal Pattern Offers Hope To The Bulls

Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Morning Star Pattern Hints At A Bounce Following Confirmation
  • Sustained Recovery Questionable Amid Broader Downtrend

GBP/USD is threatening to complete a small base which follows the emergence of a Morning Star formation on the daily. The key reversal pattern has received confirmation from a successive up-day, which may open a push towards 1.6450. Yet some skepticism over the potential for shift in sentiment may be warranted, given several failed attempts by the pair to stage a recovery over recent weeks.

GBP/USD: Morning Star Pattern Hints At A Continued Recovery

GBP/USD Key Reversal Pattern Offers Hope To The Bulls

Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

A similar narrative to the daily is evident on the four hour timeframe. The bulls appear unprepared to relinquish their grip on prices as indicated by the lackluster response to a key reversal pattern near 1.6290.

GBP/USD: Bearish Engulfing Pattern Fails To Find Follow-Through

GBP/USD Key Reversal Pattern Offers Hope To The Bulls

4 Hour Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

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