GBP/USD Morning Star To Hint At A ’Corrective Bounce’

Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Morning Star Pattern To Hint At A Bounce If Confirmed
  • Sustained Recovery Questionable Amid Broader Downtrend

GBP/USD’s rebound has yielded a Morning Star formation, which offers a glimmer of hope for the Pound bulls. The key reversal pattern awaits confirmation from a successive up-day, which if received could raise the possibility of a bounce towards the 1.6450 mark. 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 Awaiting Confirmation

GBP/USD Morning Star To Hint At A 'Corrective Bounce'

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

The four hour chart offered an early hint at a bounce for the Pound. The Bullish Engulfing formation and climb over 1.6153 suggested an intraday recovery for the pair. Amid a void of bearish signals the spotlight is cast on the 1.6290 ceiling.

GBP/USD: Bullish Engulfing Pattern Hinted At An Intraday Recovery

GBP/USD Morning Star To Hint At A 'Corrective Bounce'

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

By David de Ferranti, Currency Analyst, DailyFX

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