GBP/USD Bulls Retreat After Doji On The Daily
- GBP/USD Technical Strategy: Pending Short
- Dojinear key resistance suggests hesitation from traders
- Shooting Star pattern offered early warning in intraday trade
GBP/USD is 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. A pullback is likely to be met by buying support at the 1.6900 mark.
GBP/USD: Doji Offers Sign of Hesitation By Bulls
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 of a retreat for GBP/USDin yesterday’s trading. However, several Dojis now suggest the bears are hesitant to push prices lower leaving a mixed technical bias based on candlestick analysis for the pair over the session ahead.
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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