European automakers surge after U.S. announces trade pact with Japan
Talking Points
- Strategy: Flat
- Bullish Engulfing Formation Awaiting Confirmation
- H4 Chart Doji Reveals Hesitation From The Bulls
GBP/USD’s climb above the 1.5880 barrier has produced a Bullish Engulfing formation, which awaits confirmation from a successive up-session. If received it may herald a revisit of the former range-highs near 1.6170. Yet with signs of a short-term downtrend intact, a sustained recovery may prove challenging.
Below 1.5880 skews the risks towards the Mid-September 2013 low near 1.5770.
Traders should note the upcoming Bank of England Inflation Report and UK Employment Data hold the potential to spark significant intraday volatility for the Sterling. This may negate technical signals offered.
GBP/USD: Bullish Engulfing Formation Awaiting Confirmation
A Dojion the four hour chart has offered an early signal of exhaustion from the bulls. Yet the absence of more definitive reversal signals casts doubt on a potential correction over the session ahead.
GBP/USD: Doji Suggests Exhaustion From The Bulls
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