3 Dec 2013
GBP/USD prints bearish reversal on the daily
FXstreet.com (Bali) - GBP/USD was unable to hold onto early week gains above the 1.64 handle, leading to a steady retreat towards 1.6350, printing a daily bearish pin bar in the process.
While the underlying trend continues to indicate further buying pressure is here to stay - especially after the 1.6240/50 breakout -, the daily bearish reversal formation suggests that a short term correction might potentially develop, aiming for a retest of breakout point at 1.6240/50.
The latest rally by the GBP/USD has left behind enough space for sellers to potentially brave into ST reversals, with initial target (daily view) at 1.6240/50 (old resistance + Tenkan sen daily). To get there, sellers will have to break a series of intraday layers, including the kumo cloud on the hourly and technicals through 1.6320 down to 1.63 (hourly swing lows). On the upside, bulls are likely to retain control once 1.6380/90 frontier is taken back.
While the underlying trend continues to indicate further buying pressure is here to stay - especially after the 1.6240/50 breakout -, the daily bearish reversal formation suggests that a short term correction might potentially develop, aiming for a retest of breakout point at 1.6240/50.
The latest rally by the GBP/USD has left behind enough space for sellers to potentially brave into ST reversals, with initial target (daily view) at 1.6240/50 (old resistance + Tenkan sen daily). To get there, sellers will have to break a series of intraday layers, including the kumo cloud on the hourly and technicals through 1.6320 down to 1.63 (hourly swing lows). On the upside, bulls are likely to retain control once 1.6380/90 frontier is taken back.