GBP/USD Downside Risks Remain After Bullish Signal Falls Flat
- 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).
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
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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