News Column

GBP/USD Pushes Off Support As Piercing Line Pattern Forms

May 12, 2014

David de Ferranti

Talking Points



  • GBP/USD Technical Strategy: Longs Preferred
  • Harami on the daily finds little follow-through
  • Piercing Line pattern forming near key support



    GBP/USDhas bounced off key support at 1.6820 after posting some modest declines on the back of a Harami candlestick pattern. The recovery appears to be forming a Piercing Ling pattern which would be indicative of bullish momentum recovering. A push back above 1.6900 would be seen as an opportunity to enter new long positions with a target offered by 1.6995.



    GBP/USD: Prices Push Off Key Support

    GBP/USD Pushes Off Support As Piercing Line Pattern Forms





    Intraday price action on the four hour chart reveals a Doji formation which suggests sellers are hesitant to push prices below the 1.6820/30 mark. In the context of a longer-term uptrend, the pullback may afford new long entries.





    GBP/USD: Rally Stalls At 1.6990

    GBP/USD Pushes Off Support As Piercing Line Pattern Forms











    Follow David on Twitter: @Davidde





    Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.












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    Source: DailyFx


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