GBP/USD Downside Risks Remain With Bullish Reversal Patterns Lacking
- GBP/USD Technical Strategy: Shorts Preferred
- Bearish Engulfing Formation Casts Immediate Risk Lower
- Spotlight Cast On 1.6660/70 In Absence Of Bullish Signals
GBP/USD’s woes may be set to continue as an absence of bullish reversal patterns casts doubt on a recovery for the pair. A Bearish Engulfing formation near the 1.6900 handle suggests downside risks remain and casts the spotlight on 1.6660/70.
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 1.6760 mark which suggests some hesitation from the bears. An intraday bounce would likely encounter selling pressure near the former support-turned-resistance level at 1.6810.
GBP/USD: Dojis Denote Indecision Near Intraday Support
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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