GBP/USD Doji Denotes Hesitation On Test Of Critical Support

By DailyFx | August 15, 2014 AAA

DailyFX.com -

Talking Points

  • GBP/USD Technical Strategy: Shorts Preferred
  • Doji Demonstrates Indecision Near Support
  • 1.6660 Offering Intraday Support To The Pound

GBP/USD has managed to regain its footing in recent trade as the emergence of a Doji formation suggests hesitation from the bears. Recent price action remains indicative of a short-term downtrend which casts the immediate risk lower. A daily close below the nearby 1.6660 floor would re-open the April lows near 1.6550. However, the surge in real trading volume warns of a potential reversal - a pattern evident over recent months for the Pound.

GBP/USD: Bears Hesitate On Test Of Critical Support

GBP/USD Doji Denotes Hesitation On Test Of Critical Support

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

Examining intraday price action on the four chart; a Doji formation near the 1.6660 barrier denotes indecision amongst traders. However, bullish reversal candlesticks remain glaringly absent, which casts doubt on the potential for an intraday recovery. Sellers are likely to keep the pair capped below former support-turned resistance at 1.6760.

GBP/USD: Doji Highlights Indecision Near Intraday Support

GBP/USD Doji Denotes Hesitation On Test Of Critical Support

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

By David de Ferranti, Currency Analyst, DailyFX

Follow David on Twitter: @Davidde

To receive David’s analysis directly via email, please sign up here.

Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.

comments powered by Disqus
Related Forex Analysis
  1. EUR/USD sitting just above 1.2950 support
    Forex News

    EUR/USD sitting just above 1.2950 support

  2. Yen Gains, Aussie Dollar Falls on Soft Chinese Economic Data
    Forex News

    Yen Gains, Aussie Dollar Falls on Soft Chinese Economic Data

  3. USD/JPY drifting lower, but still well above 107.00
    Forex News

    USD/JPY drifting lower, but still well above 107.00

  4. Crude Oil Prices Aiming to Extend Lower, SPX 500 May Be Topping
    Forex News

    Crude Oil Prices Aiming to Extend Lower, SPX 500 May Be Topping

  5. USD/JPY Technical Analysis: Prices Set New Six-Year High
    Forex News

    USD/JPY Technical Analysis: Prices Set New Six-Year High

Trading Center