GBP/USD Dojis Highlight Hesitation At Range-Bottom
- GBP/USD Technical Strategy: Pending Long
- Narrow range between 1.7100 and 1.1710 remains in play
- Awaiting bullish signals in intraday trade to open longs
GBP/USD continues to keep traders in suspense as the pair wavers within a narrow 70 pip range between 1.7100 and 1.7170. While a Hanging Man warns of a correction, a push lower may be difficult given the close proximity to support. Playing the recent range may offer a better approach than trying to pick a top for the Pound. To this effect the four hour chart offers more timely signals.
GBP/USD: Range Remains In Play
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart; several Doji formations near 1.7100 denote hesitation from traders to push past the key technical level. The emergence of a bullish pattern would offer a more definitive signal for a push to the range-top at 1.7170.
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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