GBP/USD Pattern Analysis - W1 Bullish Retracement, H12 Bullish AB=CD and D1 Bullish 3-Drives

• GBP/USD Technical Strategy: Sidelines Preferred
• Bullish Reversal Signal Finds Confirmation
• Doji On H4 Signals Indecision In Intraday Trade

GBP/USD continues its cautious recovery following the appearance of a Piercing Line pattern near its recent lows. Yet recent reversal patterns have seen a limited response from traders. Alongside a core downtrend some skepticism over further advance may be warranted. Selling interest is likely to be renewed at the 1.6170 ceiling. While a daily close below 1.5880 would potentially open the way for a descent towards the mid-September 2013 low near 1.5770.

Bullish Signal Emerges At Key Support

The four hour may already be warning of fading upside momentum for the Pound. A Doji formation near 1.6130 suggests reluctance from the bulls to lead the pair higher. Yet an absence of classic reversal signals leaves a pullback as questionable over the session ahead.

Forming bullish Retracement pattern:

Forming bullish ABCD pattern:

Forming bullish 3-Drives pattern: