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GBP/USD Risks Skewed Lower After Harami Confirmation Fails

GBP/USD Risks Skewed Lower After Harami Confirmation Fails

David de Ferranti, Currency Analyst

Talking Points

  • Strategy: Short, Stop: 1.5880 (Close), Target: 1.5770
  • Harami Fails To Find Confirmation Following Pullback
  • H4 Chart Dojis Revealed Bulls’ Intraday Exhaustion

GBP/USD has managed to close sub the 1.5880 barrier, leaving a Harami formation to fall flat. Alongside a short-term downtrend this leaves the risks skewed towards the Mid-September 2013 low near 1.5770.

GBP/USD: Harami Denied Confirmation Near Key Barrier

GBP/USD Risks Skewed Lower After Harami Confirmation Fails

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

An ensemble of Dojis on the four hour chart offered an early signal of exhaustion from the bulls. With bullish reversal patterns now lacking the pair may be in line for a revisit of the recent lows near 1.5800.

GBP/USD: Dojis Suggested Exhaustion From The Bulls

GBP/USD Risks Skewed Lower After Harami Confirmation Fails

4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

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