GBP/USD Bearish Engulfing Pattern Warns Of Intraday Dip
- GBP/USD Technical Strategy: Sidelines Preferred
- Hanging Man formation hints at potential retreat
- Bearish Engulfingpattern warns of intraday dip
GBP/USD is at a crossroads after a Hanging Man formation offered a reversal signal near noteworthy resistance at 1.7170. While the candlestick failed to find confirmation from a successive down period, it signifies hesitation from the bulls to push the Pound higher. A pullback is likely to find support at 1.7040.
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
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