GBP/USD Aims Lower After Drop Denies Bullish Pattern Validation
- Strategy: Short, Stop: 1.5880 (Close), Target: 1.5790
- Bullish EngulfingFormation Denied Confirmation
- H4 Chart Doji Reveals Hesitation From The Bulls
GBP/USD sharp retreat has left a Bullish Engulfingformation lacking confirmation and in turn casts the spotlight lower for the pair. Alongside a short-term downtrend the risks are centered on the Mid-September 2013 low near 1.5770.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Hanging Manon the four hour chart flashed an early warning signal to traders. With bullish reversal patterns lacking in intraday trade a corrective bounce over the session ahead is questionable.
GBP/USD: Hanging Man Offered Early Warning 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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