GBP/USD Dark Cloud Cover Turns Risks Lower From 1.5800
- Strategy: Short (From: 1.5700), Stop: 1.5800 (Daily Close), Target: 1.5585 Pending On Close Below 1.5585
- Dark Cloud Cover Awaiting Confirmation Near Key Barrier
- H4 Short Body Candle and Doji Medley Indicates Indecision
GBP/USD’s pullback from the 1.5800 barrier has left a Dark Cloud Cover formation in its wake. The bearish reversal signal may recast the risk lower towards the 1.5585 floor if confirmed by a successive down-day. This presents a fresh short-term range-trading opportunity, with a stop above the nearby ceiling in case of an upside breakout.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour timeframe paints a similar picture to the daily. A medley of short body candles and Doji formations further indicated a lack of conviction amongst the bulls near 1.5800. With key reversal patterns lacking the stage may be set for a slow drift lower.
GBP/USD: Medley Of Short Body Candles Indicated Indecision Near Key Barrier
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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