Talking Points
- GBP/USD Technical Strategy: Pending Short
- Plunge Leaves Bullish Reversal Signals Lacking
- Awaiting Break Below Support For Fresh Positioning
GBP/USD is left lacking key reversal patterns following a plunge towards its 2014 low near 1.6255. This raises a question mark over the prospect of a recovery. Against the backdrop of a downtrend shorts remain preferred. However, given the proximity to nearby buying support a daily close below the barrier would be preferred before adopting fresh positioning.
GBP/USD: Descent Leaves Bullish Signals Lacking
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A similar narrative to the daily is evident in intraday trade. While buying interest has been renewed at the 1.6290 mark, reversal candlesticks remain missing. This leaves awaiting a downside break preferred.
GBP/USD: Awaiting Clearance Of Nearby Buying 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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