News Column

Forex Strategy: GBP/USD Advances Further Post Hammer Candle

May 22, 2014

David de Ferranti

Talking Points



  • GBP/USD Technical Strategy: Pending Long
  • Hammer formation helped signal bounce
  • Daily close above resistance to open further gains



    GBP/USD continues its ascent following the Hammer formation on the daily which suggested a shift in sentiment for the pair near 1.6760. While there are some signs of hesitation amongst traders at the psychologically-significant 1.6900 handle, a bearish reversal signal is yet to emerge. A daily close above 1.6900 would suggest the bulls remain in control of prices, and would open up a re-test of the 2014 high near 1.7000.





    GBP/USD: Close Above 1.6900 To Open Advance On 2014 High

    Forex Strategy: GBP/USD Advances Further Post Hammer Candle





    Examining intraday price action; the Harami near 1.6900 has failed to find much follow-through. With prices probing above 1.6900 a bearish candlestick pattern is notably absent. This suggests gains may be set to continue over the session ahead.





    GBP/USD: Harami Finds Little Follow-Through As Prices Probe Above 1.6900

    Forex Strategy: GBP/USD Advances Further Post Hammer Candle











    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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