GBP/USD Downside Momentum Fades As Dojis Emerge Near 1.6450
- 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
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.