GBP/USD Doji Indicates Indecision Near Critical Range-Bottom
- Strategy: Flat, Short Pending On Close Below 1.5585
- Awaiting Guidance Near Key Technical Barrier
- Morning Star Taking Shape On H4 Chart
GBP/USD is once again pressing against its range bottom near 1.5585 as a Doji emerges on the daily. The pattern suggests reluctance from the bears to drag the pair lower. Yet it is not a key reversal pattern, which in turn casts some doubt over the potential for a bounce back to the 1.5800 ceiling.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour timeframe is beginning to paint a more constructive picture. The close of the current candle in its present position would mark a Morning Star formation. Such a bullish reversal signal would return the risks higher towards the 1.5800 mark.
GBP/USD: Morning Star Taking Shape 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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