GBP/USD Risks Skewed To The Downside Amid Absence Of Reversal Signs
- GBP/USD Technical Strategy: Shorts Preferred
- Absence of Reversal Patterns Casts Risk Lower
- H4 Chart Casts Doubt On A Corrective Bounce
GBP/USD has pushed past the critical 1.5880 barrier with key reversal candlesticks absent. This suggests the risks may be skewed to the downside for the pair and opens a potential descent on the Mid-September 2013 low near 1.5770. A climb back over the 1.5880 hurdle would be required to negate a bearish technical bias.
GBP/USD: Clears Key Barrier With Bullish Signals Absent
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Similarly, the four hour chart leaves little indication of a potential corrective bounce for the Sterling. Given the context afforded by the daily this suggests the currency may be exposed to further weakness.
GBP/USD: Lacking Reversal Signs In Intraday Trade
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.