GBP/USD Post-Doji Upswing May Struggle To Find Momentum

By DailyFx | August 18, 2014 AAA

DailyFX.com -

Talking Points

  • GBP/USD Technical Strategy: Shorts Preferred
  • Dojis Demonstrated Indecision Near Support
  • Harami Fails To Find Follow-Through On H4

The Pound has been afforded a small corrective bounce after several Dojis near the 1.6660 floor indicated an unwillingness to drive the currency lower. Nonetheless, recent price action remains suggestive of a short-term downtrend which leaves the immediate risk lower. A daily close below 1.6660 would re-open the April lows near 1.6550. However, the surge in real trading volume may warn of the potential for a more sustained reversal - a pattern evident over recent months for the Pound.

GBP/USD: Bears Retreat Following Several Doji Formations On The Daily

GBP/USD Post-Doji Upswing May Struggle To Find Momentum

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

The four hour chart reveals the emergence of a Harami pattern shy of the 1.6760 barrier. However, the key reversal formation failed to find follow-through which casts doubt on the potential for a correction over the session ahead.

GBP/USD: Harami Finds Little Follow-Through

GBP/USD Post-Doji Upswing May Struggle To Find Momentum

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. AUD/USD Recovery Hopes Fade With Reversal Pattern Lacking Confirmation
    Forex News

    AUD/USD Recovery Hopes Fade With Reversal Pattern Lacking Confirmation

  2. USD/JPY bulls need to take a breath before a new attack at 110.00
    Forex News

    USD/JPY bulls need to take a breath before a new attack at 110.00

  3. Crude Oil Recovers Ahead Of Inventories, Platinum Hits Multi-Year Low
    Forex News

    Crude Oil Recovers Ahead Of Inventories, Platinum Hits Multi-Year Low

  4. GBP/USD nervous below 1.6200, waiting for data
    Forex News

    GBP/USD nervous below 1.6200, waiting for data

  5. Dollar’s Current Bull Leg Strongest since Rally Through Crisis
    Forex News

    Dollar’s Current Bull Leg Strongest since Rally Through Crisis

Trading Center