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GBP/USD Downside Risks Remain After Bullish Signal Falls Flat

GBP/USD Downside Risks Remain After Bullish Signal Falls Flat

David de Ferranti, Currency Analyst

Talking Points

  • Strategy: Short, Stop: 1.5770 (Close), Target: 1.5450
  • Risks Skewed Lower After Hammer Falls Flat
  • Intraday Harami Formation Sees Lackluster Response

GBP/USD continues to exhibit negative technical cues after a Hammer formation was left lacking confirmation. In the presence of a short-term downtrend the immediate risk remains skewed lower. This puts the focus on 1.5585, which if broken may open the 1.5425 floor (the late August ’13 low).

GBP/USD: Downside Risks Remain As Bullish Signal Fall Flat

GBP/USD Downside Risks Remain After Bullish Signal Falls Flat

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

The four hour timeframe has produced a Harami pattern. Yet the bullish reversal signal has thus far seen a lackluster response. This in turn casts doubt over the prospect of an intraday recovery for the Pound.

GBP/USD: Harami Fails To Stir The Bulls

GBP/USD Downside Risks Remain After Bullish Signal Falls Flat

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

By David de Ferranti, Currency Analyst, DailyFX

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