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.
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency 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.