GBP/USD Rally Stalls As Hanging Man Hints At A Retreat
- GBP/USD Technical Strategy: Sidelines Preferred
- Morning Stardelivered several successive up-days
- Hanging Man formation hints at potential retreat
After sustaining several consecutive up-days on the back of a Morning Star formation the Pound has retreated yielding a Hanging Man candlestick. The reversal pattern suggests a potential retreat, however it has yet to be confirmed by a successive down period.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart; a Bearish Engulfing pattern suggests the potential for an intraday dip to support at 1.7100.
GBP/USD: Bearish Engulfing Formation Hints At Intraday Dip
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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