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GBP/USD Bears Take A Breather As A Doji Denotes Deliberation

GBP/USD Bears Take A Breather As A Doji Denotes Deliberation

David de Ferranti, Currency Analyst

Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Doji Suggests Bears Have Loosened Their Grip
  • H4 Morning Star Hinted At An Intraday Turn

The GBP/USD bears have loosened their grip on the pair as a Doji formation suggests hesitation to lead it lower. However, the candlestick pattern is not considered an indication of a potential reversal. Which suggests a consolidation may be more likely than a recovery for the Pound. A close below the 1.6215 floor would be required to warn of a retest of the 2014 lows near 1.6060.

GBP/USD: Doji Denotes Deliberation Near 1.6215

GBP/USD Bears Take A Breather As A Doji Denotes Deliberation

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

The four hour chart paints a more encouraging picture for the Pound. A Morning Star formation indicated an intraday turning point for the currency. A push past selling pressure at the 1.6275 may open a further advance.

GBP/USD: Morning Star Heralded Intraday Bounce

GBP/USD Bears Take A Breather As A Doji Denotes Deliberation

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

By David de Ferranti, Currency Analyst, DailyFX

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