GBP/USD Dark Cloud Cover Delivers Further Declines
- GBP/USD Technical Strategy: Sidelines Preferred
- Dark Cloud Cover Offered Warning Near 1.6170
- Downside Risks Centered On Lows Near 1.5880
GBP/USD’s cautious creep lower has endured following a warning of weakness from a Dark Cloud Cover formation. Confirmation of the reversal signal leaves the downside risks centered on the pair’s recent lows near 1.5880. A daily close above 1.6170 would be required to negative a bearish technical bias and open the potential for a run on the recent 1.6400 peak.
GBP/USD: Dark Cloud Cover Offered Ominous Warning
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart suggests a less encouraging picture for a sustained pullback. A Harami near 1.5995 offers a bullish reversal signal in intraday trade. However, a succession of short-body candles does little to confirm the candlestick pattern, which may suggest a lack of follow-through over the session ahead.
GBP/USD: Harami Offers Bullish Signal 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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