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GBP/USD Recovery Doubtful With Void Of Bullish Candlesticks

GBP/USD Recovery Doubtful With Void Of Bullish Candlesticks

2014-07-24 11:49:00
David de Ferranti, Currency Analyst
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Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Evening Star Offered Warning of Weakness Ahead
  • Void Of Bullish Signals Casts Doubt On A Recovery

GBP/USD has extended its slide in recent trading after an Evening Star formation near 1.7170 offered an ominous warning of a correction for the pair. With an absence of bullish reversal signals, the Pound may be primed for a pullback to 1.6900 if the daily candle closes below 1.7040.

GBP/USD: Evening Star Offered Ominous Warning Near Recent Highs

GBP/USD Recovery Doubtful With Void Of Bullish Candlesticks

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

The four hour chart reflects a similar story to the daily with a void of key reversal signals casting doubt on a potential recovery for the Pound. However, GBP/USD’s descent may be slowed by nearby support resting at the psychologically-significant 1.7000 handle.

GBP/USD: Absence of Reversal Signals Casts Doubt On A Recovery

GBP/USD Recovery Doubtful With Void Of Bullish Candlesticks

4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

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