Talking Points
- GBP/USD Technical Strategy: Sidelines Preferred
- Morning Star Leaves Focus Higher On 1.6450
- Correction Questionable Amid Void Of Reversal Signals
The Pound may continue its grind higher with a Morning Star formation left in the rearview mirror. This leaves the spotlight on former support-turned-resistance at 1.6450, above which would open 1.6526. A daily close below the 1.6270 floor would be required to warn of negative shift in sentiment and a possible revisit of the 2014 lows.
GBP/USD: Morning Star Lights Up 1.6450 Ceiling
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
GBP/USD remains devoid of major reversal signals on the four hour chart. Yet intraday selling pressure appears evident at the nearby 1.6407 mark. This suggests awaiting clearance of the nearby barrier may prove a more prudent approach to playing the Pound.
GBP/USD: Awaiting Push Past Intraday Selling Pressure
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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