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GBP/USD Doji Highlights Hesitation Ahead Of 1.6170 Ceiling

GBP/USD Doji Highlights Hesitation Ahead Of 1.6170 Ceiling

David de Ferranti, Currency Analyst

Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Doji Suggests Reluctance From The Bulls
  • Short Body Candles Denotes Indecision On H4

GBP/USD’s recovery has seemingly lost momentum as signaled by a Doji formation on the daily. Alongside a core downtrend some skepticism over a further advance may be warranted. Selling interest is likely to be renewed at the 1.6170 ceiling. While a daily close below 1.5880 would potentially open the way for a descent towards the mid-September 2013 low near 1.5770.

GBP/USD: Doji Suggests Caution Ahead Of Nearby Barrier

GBP/USD Doji Highlights Hesitation Ahead Of 1.6170 Ceiling

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

The four hour chart offered an early warning of fading upside momentum for the Pound. A parade of Dojis and short body candles signals indecision from traders near 1.1630. Yet an absence of classic reversal signals leaves a pullback as questionable over the session ahead.

GBP/USD: Doji Highlights Hesitation In Intraday Trade

GBP/USD Doji Highlights Hesitation Ahead Of 1.6170 Ceiling

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

By David de Ferranti, Currency Analyst, DailyFX

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