Forex Strategy - GBP/USD Falls May Continue Post Shooting Star Candle
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- GBP/USD Technical Strategy: Shorts preferred
- Failure to break above range-top offers bearish bias
- Shooting Star warns that recent declines may continue
A Shooting Star candlestick on the daily chart for GBP/USD near a critical multi-year resistance level is warning of a correction for the pair. The formation has received confirmation from a successive down day and in tandem with a shift in the trend (signaled by the 20 SMA) a bearish technical bias is offered.
Buying support is likely to emerge near the psychologically-significant 1.6600 handle, which also forms the 38.2% Fib Retracement level. However, the bulls may struggle to push the Pound higher as signaled by the lack of confirmation for a Hammer formation on the four hour chart during intraday trade.
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4 Hour Chart - Created Using FXCM Marketscope 2.0
Daily Chart - Created Using FXCM Marketscope 2.0
Weekly 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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