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Talking Points

• GBP/USD Technical Strategy: Sidelines Preferred

• Piercing Line Pattern Delivers Further Gains

• Short Body Candles Denotes Indecision On H4

GBP/USD has resumed its ascent with a Piercing Line pattern in its rearview mirror. Yet alongside a core downtrend some skepticism over a further advance may be warranted. Selling interest remains evident at the 1.6170 ceiling. A daily close above the nearby hurdle would be required to open the 1.6400 handle.

GBP/USD: Climb Resumes Following Piercing Line Pattern

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

The four hour chart presents an array of short-body candles, which suggests caution from the bulls to lead the pair higher. Yet an absence of classic reversal signals leaves a pullback as questionable over the session ahead.

GBP/USD: Bulls Cautiously Return With Reversal Signals Lacking

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

By David de Ferranti, Currency Analyst, DailyFX

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