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GBP/USD Stumble Leaves A Hanging Man Candlestick In Its Wake

GBP/USD Stumble Leaves A Hanging Man Candlestick In Its Wake

David de Ferranti, Currency Analyst

Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Hanging Man Follow-Through May Be Limited
  • Cues From Candlesticks On 4 Hour Chart Lacking

GBP/USD’s recovery has faltered with the emergence of a Hanging Man warning of a correction for the pair. Yet recent messy price action and a disdain of recent reversal signals suggests a dip may be shallow. A daily close below the 1.6270 floor would be required to indicate a more negative shift in sentiment and a possible revisit of the 2014 lows.

GBP/USD: Stumble Leaves A Hanging Man In Its Trail

GBP/USD Stumble Leaves A Hanging Man Candlestick In Its Wake

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

The four hour chart revealed signs of hesitation by the bulls near the 1.6400/7 ceiling. A medley of short body candles alongside a Doji formation suggested conviction was lacking to propel the Pound higher. At present a void of key reversal candlesticks leaves the currency lacking directional cues for the session ahead. This suggests awaiting a more constructive setup may prove a more prudent approach to playing the Sterling.

GBP/USD: Awaiting Directional Cues From Candlesticks

GBP/USD Stumble Leaves A Hanging Man Candlestick In Its Wake

4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

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