GBP/USD Dark Cloud Cover Suggests Declines To Continue
- GBP/USD Technical Strategy: Shorts Preferred
- Dark Cloud Cover offers bearish reversal signal
- Bullish patterns absent in intraday trade
GBP/USD’s retreat from the 1.7040 mark has yielded a Dark Cloud Cover pattern, which offers an ominous warning for the pair. The daily close below 1.7000 offers confirmation of the signal and suggests enough conviction amongst the bears to open the 1.6900 mark.
GBP/USD: Dark Cloud Cover Sets Up Further Declines
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; an absence of key reversal patterns suggest the potential for an extended decline. Buyers are likely to emerge at intraday support near 1.6940.
GBP/USD: Stage Set For Further Falls With Reversal Pattern Missing
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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