Talking Points
- GBP/USD Technical Strategy: Shorts Preferred
- Doji Indicates Indecision, Yet Recovery Questionable
- H4 Chart Left Wanting For Bullish Candlesticks
GBP/USD’s descent has stalled at the 1.6060 floor as a Doji on the daily highlights hesitation from traders. Yet the candlestick formation is not a classic reversal pattern, which may limit the scope for a recovery. Selling pressure is likely to be renewed at the 1.6250/5 hurdle, while a daily close below 1.6060 would set the scene for a drop towards the 1.5880 barrier.
GBP/USD: Doji Indicates Indecision Near Recent Lows
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart tells a similar story to the daily with an ensemble of short body sessions doing little to inspire confidence in a recovery for the pair. This leaves fresh shorts preferred on a break below the 1.6060 mark.
GBP/USD: Void of Reversal Signals Casts Risk Lower
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.
