FX.co ★ Bearish candlestick formation in GBPUSD.

GBPUSD has reached as high as 1.3747 yesterday and 1.3741 earlier today. Price got rejected at recent highs and is now lower than yesterday. Yesterdays candlestick pattern is a bearish hammer formation indicating increased chances of a bearish reversal.

Technically trend remains bullish as price continues making higher highs and higher lows. Price continues to respect the upward sloping support trend line, but with the RSI turning lower from overbought levels combined with a bearish hammer pattern, as we said before, at current levels we prefer to be neutral if not bearish. I believe the upside potential is very limited.