GBP/USD Reversal Pattern Emerges Near 2014 High
- GBP/USD Technical Strategy: Pending Long
- Daily close above 1.7000 suggests conviction amongst bulls
- Dark Cloud Cover pattern awaiting confirmation on the daily
GBP/USD’s retreat from the 1.7040 mark has yielded a Dark Cloud Cover pattern, which offers an ominous warning for the pair. A daily close below 1.7000 would help offer confirmation of the signal and enough conviction amongst the bears to open the 1.6900 mark.
GBP/USD: Dark Cloud Cover Emerges
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; the consolidation between 1.7000 and 1.7060 has yielded several Doji candlesticks, which highlight hesitation amongst traders. A break below 1.7000 would likely see buyers emerge at intraday support near 1.6940.
GBP/USD: Dojis Highlight Hesitation From Traders
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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