GBP/USD Stabilizes Alongside Dojis, Sustained Recovery Questionable
- GBP/USD Technical Strategy: Sidelines Preferred
- Evening Star Offered Warning of Weakness Ahead
- Void Of Bullish Signals Casts Doubt On A Recovery
GBP/USDhas hit the 1.6830 target that was offered in recent candlestick’s reports, which follows sustained selling pressure on the back of an Evening Star pattern. At this stage buyers appear prepared to support the Pound near the 1.6830 floor, which has yielded a Doji formation in intraday trade. While this could see a small corrective bounce, a sustained recovery may be limited in the absence of bullish reversal signals. A daily close below 1.6900 would be required to shift the bias to the upside, while a break of 1.6830 would open 1.6660/1.6670.
GBP/USD: Doji Forming, Yet Reversal Signals Absent
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
An examination of the four hour chart reveals several successive Doji formations near the 1.6810 mark. This signals noteworthy hesitation by the bears, yet similarly to the daily, does little to suggest a meaningful recovery for the Pound.
GBP/USD: Dojis Denote Deliberation Near 1.6810
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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