GBP/USD Recovery Stumbles Amid Void Of Reversal Candlesticks
- GBP/USD Technical Strategy: Sidelines Preferred
- Absence of Key Reversal Patterns Casts Doubt A Recovery
- Crawl Under 1.6550 Floor Needed To Open 1.6450
GBP/USD remains in a precarious position as a void of bullish candlesticks suggests the potential for further weakness. A daily close below 1.6526 would open the March lows near 1.6450 while a corrective bounce would likely encounter sellers at the 1.6660 ceiling.
GBP/USD: Lack of Bullish Signals Casts Doubt On A Recovery
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart paints leaves few directional signals for the Pound. A narrow range appears to have formed with short body candles indicating indecision amongst traders. Based on the bearish backdrop on the daily selling into corrective bounces would be preferred.
GBP/USD: Short Body Candles Suggest Conviction Lacking
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.