GBP/USD Downside Risks Remain With Bullish Reversal Patterns Lacking

By DailyFx | August 11, 2014 AAA

DailyFX.com -

Talking Points

  • GBP/USD Technical Strategy: Shorts Preferred
  • Bearish Engulfing Formation Casts Immediate Risk Lower
  • Spotlight Cast On 1.6660/70 In Absence Of Bullish Signals

GBP/USD’s woes may be set to continue as an absence of bullish reversal patterns casts doubt on a recovery for the pair. A Bearish Engulfing formation near the 1.6900 handle suggests downside risks remain and casts the spotlight on 1.6660/70.

GBP/USD: Downside Risks Remain In Absence Of Bullish Patterns

GBP/USD Downside Risks Remain With Bullish Reversal Patterns Lacking

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

An examination of the four hour chart reveals several successive Doji formations near the 1.6760 mark which suggests some hesitation from the bears. An intraday bounce would likely encounter selling pressure near the former support-turned-resistance level at 1.6810.

GBP/USD: Dojis Denote Indecision Near Intraday Support

GBP/USD Downside Risks Remain With Bullish Reversal Patterns Lacking

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

By David de Ferranti, Currency Analyst, DailyFX

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