Talking Points
- GBP/USD Technical Strategy: Shorts Pending
- Bears Hesitate As Doji Candlesticks Emerge
- Four Hour Chart Shows Signs Of Indecision
GBP/USD’s slow sideways drift has produced a pair of Dojis which signal indecision from traders. Despite the proximity to key support at 1.5880 a lack of bullish reversal patterns casts doubt on a bounce. This leaves a breakout below the nearby barrier to offer a fresh short opportunity.
GBP/USD: Dojis Suggest Indecision As Sideways Drift Endures
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A similar Doji display on the four hour chart further suggests hesitation from the bears to lead the pair lower. A more convincing close below the 1.5960 floor would be required to pave the way for a descent on the 1.5880 barrier.
GBP/USD: Doji Emerges At Intraday Barrier
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @DaviddeFe
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.
