Talking Points
- GBP/USD Technical Strategy: Pending Short
- Doji Indicates Indecision At 1.6450 Floor
- Awaiting Downside Break To Open 2014 Lows
GBP/USD’s descent has stalled as a Doji on the daily denotes hesitation by the bears. While downside momentum appears to have faded, a recovery prove difficult in the absence of key reversal patterns. A daily close below the nearby 1.6450 mark could open the 2014 lows near 1.6255.
GBP/USD: Bears Lose Steam As Doji Emerges
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A similar narrative is evident in intraday trade. The medley of short body sessions and Doji formations suggests a degree of caution from traders near the pair’s recent lows. While the pair has managed to regain its a recovery looks questionable given the absence of bullish signals.
GBP/USD: Ensemble Of Dojis Indicates Indecision From Traders
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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