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Forex Strategy - GBP/USD Dojis Signal Struggle To Reclaim 1.6770

Forex Strategy - GBP/USD Dojis Signal Struggle To Reclaim 1.6770

David de Ferranti, Currency Analyst

Talking Points

  • 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. Several successive short sessions suggests conviction may not be strong enough amongst the bulls to push prices back to the 1.6770 top. A break of the range-bottom at 1.6600 would open up the 50% Fib Retracement level at 1.6540.

GBP/USD Signs of Indecision on Daily

Forex-Strategy---GBPUSD-Dojis-Signal-Struggle-To-Reclaim-1.6770_body_Picture_3.png, Forex Strategy - GBP/USD Dojis Signal Struggle To Reclaim 1.6770

Daily Chart - Created Using FXCM Marketscope 2.0

As noted in yesterday’s GBP/USD candlesticks report the 1.6650 mark remains a key intraday level of resistance and may continue to cap gains for the pair.

GBP/USD Range Break Threatened

Forex-Strategy---GBPUSD-Dojis-Signal-Struggle-To-Reclaim-1.6770_body_Picture_2.png, Forex Strategy - GBP/USD Dojis Signal Struggle To Reclaim 1.6770

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

Forex-Strategy---GBPUSD-Dojis-Signal-Struggle-To-Reclaim-1.6770_body_Picture_1.png, Forex Strategy - GBP/USD Dojis Signal Struggle To Reclaim 1.6770

Weekly Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, FXCM

Follow David on Twitter: @Davidde

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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