Forex Strategy: GBP/USD Dark Cloud Cover Pattern Warns of Declines
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- GBP/USD Technical Strategy: Shorts preferred
- Failure to break above range top offers bearish bias
- Dark Cloud Cover pattern warns of declines
A Dark Cloud Cover candlestick pattern on the four hour chart is warning of declines for the GBP/USD. This comes as selling pressure has once again capped further gains for the pair around the 1.6745 mark. With the range-top remaining in force a bearish technical bias is offered with a potential target at noteworthy support near 1.6610.
Traders should be mindful that the upcoming Bank of England rate decision will likely spark fresh volatility for the GBP/USD and may negate technical signals offered.
Confirm your chart-based trade setups with the Technical Analyzer.
4 Hour Chart - Created Using FXCM Marketscope 2.0
--- Written by David de Ferranti, Market Analyst, FXCM
Contact and follow David on Twitter: @Davidde
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