GBP/USD Evening Star Pattern Forming After Failure To Break 1.7000

By DailyFx | Updated July 30, 2014 AAA

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Talking Points

  • GBP/USD Technical Strategy: Pending Short
  • Evening Star formation emerging on daily
  • Shooting Star pattern offered early warning

GBP/USDis at a critical juncture as the pair trades shy of the psychologically-significant 1.7000 handle. While a Doji has formed on the daily, it may not be sufficient to suggest a correction at this stage. However, with a long down day now underway the pair is forming an Evening Starpattern. A close of the candle offer a key reversal signal and suggest a retreat to 1.6900.

GBP/USD: Reversal Signal Forming Near Key Resistance

GBP/USD Evening Star Pattern Forming After Failure To Break 1.7000

Daily Chart - Created Using FXCM Marketscope 2.0

Drilling down to the four hour chart, the Shooting Star formation near 1.7000 offered an early warning for GBP/USD. With bullish signals absent in intraday trade, the pair may struggle to recover, particularly given strong selling pressure likely remains near the recent highs.

GBP/USD: Shooting Star Offered Early Warning

GBP/USD Evening Star Pattern Forming After Failure To Break 1.7000

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, DailyFX

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