Forex Strategy - GBP/USD Candles Suggest Bears In Doubt At 1.6600
- GBP/USD Technical Strategy: Sidelines Preferred
- Range between 1.6600 and 1.6765/70 intact
- Dark Cloud Cover on weekly warns of larger correction
This week will be critical for the Pound as the pair threatens a downside break of the recent trading range. The Doji straddling support at 1.6600 on the daily signifies indecision amongst traders near the range-bottom. Several successive short sessions suggests conviction may not be strong enough amongst the bulls to push prices back to the 1.6770 top.
GBP/USD Signs of Indecision on Daily
Daily Chart - Created Using FXCM Marketscope 2.0
While a Bullish Engulfing candlestick pattern on the four hour points to an intraday rally for the pair, sellers sitting at 1.6650 may act to cap further gains.
GBP/USD Range Break Threatened
4 Hour Chart - Created Using FXCM Marketscope 2.0
The ominous Dark Cloud Cover formation on the weekly at multi-year resistance also remains on the radar, and is threatening a more significant correction ahead for the Pound. A potential target is offered by the 23.6% Fib Retracement Level near 1.6350.
GBP/USD Weekly Offers Warning
Weekly Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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