GBP/USD Bulls Lose Steam As Doji Suggests Hesitation At Range-Top
- GBP/USD Technical Strategy: Sidelines Preferred
- Doji Highlights Hesitation From The Bulls Near 1.6170
- Harami On H4 May Herald A Pullback If 1.6130 Cleared
GBP/USD traders are showing signs of indecision as suggested by a Doji formation near the pair’s recent highs. However, the absence of definitive reversal signals leaves a pullback as questionable. A daily close above 1.6170 would be required to open the potential for a run on the recent 1.6400 peak.
GBP/USD: Doji Denotes Indecision At Critical Barrier
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart deserves close attention over the session ahead. A Harami pattern has received confirmation from a successive down-period, which may be the precursor to a deeper correction. Buyers appear intent on supporting the Sterling at the 1.6130 floor, which if broken may herald a retreat to 1.5995.
GBP/USD: Awaiting Slip Below 1.6130 With A Harami In Tow
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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