GBP/USD Revisits 1.6270 Floor After Hanging Man Delivers Dip
- GBP/USD Technical Strategy: Sidelines Preferred
- Hanging Man Follow-Through May Be Limited
- Cues From Candlesticks On 4 Hour Chart Lacking
GBP/USD has continued to pullback after the appearance of a Hanging Man candlestick warned of a correction for the pair. Recent “messy” price action and a lack of follow-through for recent reversal signals suggests the latest 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
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Sideways price action on the four hour chart leaves a void of clear directional signals from candlesticks. This suggests awaiting a more constructive setup may prove a more prudent approach to playing the Pound.
GBP/USD: Awaiting Directional Cues From Candlesticks
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.