News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
GBP/USD Doji Signals Conviction Lacking As Consolidation Continues

GBP/USD Doji Signals Conviction Lacking As Consolidation Continues

David de Ferranti, Currency Analyst

Talking Points

  • 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

GBP/USD Doji Signals Conviction Lacking As Consolidation Continues

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

GBP/USD Doji Signals Conviction Lacking As Consolidation Continues

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.

DISCLOSURES