GBP/USD Recovery Falters As Dark Cloud Cover Awaits Confirmation
- GBP/USD Technical Strategy: Sidelines Preferred
- Dark Cloud Cover Awaiting Confirmation
- Downside Risks Remain In Intraday Trade
GBP/USD has seemingly lost some upward momentum as suggested by a Dark Cloud Cover formation near the 1.6170 barrier. Critically, the key reversal pattern awaits confirmation from a successive down-day to be validated. Downside risks are centered on the pair’s recent lows near 1.5880. In the alternative scenario, a daily close above 1.6170 would open the potential for a run on the recent 1.6400 peak.
GBP/USD: Dark Cloud Cover Offers Ominous Warning Near 1.6170
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart offered an early warning of a potential pullback during intraday trade. The Dark Cloud Cover pattern and slide under 1.6130 warns of a deeper setback for the Sterling.
GBP/USD: Bearish Pattern Casts Risks Lower In Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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