GBP/USD Evening Star Pattern Forming After Failure To Break 1.7000
- GBP/USD Technical Strategy: Pending Short
- Evening Star formation emerging on daily
- Shooting Star pattern offered early warning
GBP/USDis at a critical juncture as the pair trades shy of the psychologically-significant 1.7000 handle. While a Doji has formed on the daily, it may not be sufficient to suggest a correction at this stage. However, with a long down day now underway the pair is forming an Evening Starpattern. A close of the candle offer a key reversal signal and suggest a retreat to 1.6900.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart, the Shooting Star formation near 1.7000 offered an early warning for GBP/USD. With bullish signals absent in intraday trade, the pair may struggle to recover, particularly given strong selling pressure likely remains near the recent highs.
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.