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GBP/USD Recovery May Prove Challenging With Bearish Pattern In Tow

GBP/USD Recovery May Prove Challenging With Bearish Pattern In Tow

2014-10-13 07:22:00
David de Ferranti, Currency Analyst
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Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Dark Cloud Cover Receives Confirmation
  • Bullish Engulfing Pattern Emerges On H4

GBP/USD remains in a congestion “zone” with a Dark Cloud Cover formation in the rearview mirror. The key reversal candlestick pattern has received confirmation from a successive down-day, which may herald a return to the recent lows near 1.5950. A more convincing close above the 1.6170 barrier would be required to negate the bearish reversal pattern and open the 1.6400 ceiling.

GBP/USD: Recovery Loses Steam As A Bearish Pattern Emerges

GBP/USD Recovery May Prove Challenging With Bearish Pattern In Tow

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

The four hour chart paints a divergent picture to the daily. A Bullish Engulfing formation near the 1.6000 floor signals the potential for an advance over the session ahead. A break above the 1.6130 mark could clear the way for a push towards the recent highs near 1.6210.

GBP/USD: Reversal Signal Offers Hope To The Bulls In Intraday Trade

GBP/USD Recovery May Prove Challenging With Bearish Pattern In Tow

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

By David de Ferranti, Currency Analyst, DailyFX

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