GBP/USD Technical Analysis - Prices put in a bullish Morning Star candlestick pattern in a support cluster marked by two alternative rising trend linesset from mid-January 2009, based against the May 20 2010 low and the other against the June 1 2012 low. The setup warns of a reversal higher, with confirmation to be seen on a break downward-sloping barrier set from the January 2 high (now at 1.5771). Such a scenario would expose 1.5877 as the next upside objective. We remain short for now but would consider closing the trade if the break of 1.5771 is confirmed on a daily-closing basis.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail firstname.lastname@example.org. Follow Ilya on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, please CLICK HERE