GBP/USD Aiming Lower With Reversal Candlestick Missing
- GBP/USD Technical Strategy: Shorts Preferred
- Break of key support puts 1.6660/2 on the cards
- Bounce looks doubtful with reversal signals lacking
GBP/USD’s drop below the critical 1.6820 mark signals the bears have taken control of prices in recent trading, which follows on from the Harami pattern near 1.7000. With a bullish reversal candlestick pattern seemingly absent on the daily and four hour charts, a continued correction to support at 1.6662 looks likely.
Daily Chart - Created Using FXCM Marketscope 2.0
Examining intraday price action in more detail there are few signs of a bounce in the session ahead with a bullish candlestick missing. Buyers may be prepared to support prices at the 1.6700/5 mark.
GBP/USD: Set To Continue Declines With Bullish Signal Missing
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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