GBP/USD Recovery Stumbles As Shooting Star Warns Of Weakness
- GBP/USD Technical Strategy: Sidelines Preferred
- Piercing Line Pattern Finds Limited Follow-Though
- Shooting Star Formation Awaiting Confirmation
GBP/USD’s recovery has faulted as the appearance of a Shooting Star formation warns of a further correction. If confirmed by a successive down day the key reversal pattern could herald a retest of the pair’s recent lows at 1.6526. Whereas a daily close above 1.6660 would be required to warn of a small base and negate a bearish technical bias.
GBP/USD: Shooting Star Warns Of Weakness
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
An Evening Star offered an early indication of a possible correction for GBP/USD. A recovery looks questionable in the absence of bullish signals. Yet the downside may be limited given the proximity of current prices to nearby buying support.
GBP/USD: Intraday Bearish Signal Offered Early Warning
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.