GBP/USD Doji Signals Conviction Lacking As Consolidation Continues
- GBP/USD Technical Strategy: Sidelines Preferred
- Dark Cloud Cover Receives Limited Response
- Consolidation Within 1.5950 and 1.6180 Endures
GBP/USD continues to search for direction within the 1.5950 to 1.6170/80 region with a Dark Cloud Cover pattern in its wake. Thus far the key reversal candlestick formation has found little-follow through with a subsequent Doji highlighting hesitation from traders. This leaves a more constructive setup desired to offer a clearer directional bias for the Sterling.
GBP/USD: Doji Denotes Indecision Within Trading Band
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart highlights a lack of conviction amongst traders as GBP/USD continues to be capped below 1.6130 in intraday trade. A Dark Cloud Cover formation at the nearby ceiling suggested the bulls were losing their grip on the pair. Yet with follow-through limited the pair is left lacking cues from candlesticks at this stage.
GBP/USD: Dark Cloud Cover Finds Limited Response As Consolidation Endures
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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