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Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Absence of Key Reversal Patterns Casts Doubt A Recovery
  • Crawl Under 1.6550 Floor Needed To Open 1.6450

GBP/USD remains in a precarious position as a void of bullish candlesticks suggests the potential for further weakness. A daily close below 1.6526 would open the March lows near 1.6450 while a corrective bounce would likely encounter sellers at the 1.6660 ceiling.

GBP/USD: Lack of Bullish Signals Casts Doubt On A Recovery

GBP/USD Recovery Stumbles Amid Void Of Reversal Candlesticks

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

The four hour chart paints leaves few directional signals for the Pound. A narrow range appears to have formed with short body candles indicating indecision amongst traders. Based on the bearish backdrop on the daily selling into corrective bounces would be preferred.

GBP/USD: Short Body Candles Suggest Conviction Lacking

GBP/USD Recovery Stumbles Amid Void Of Reversal Candlesticks

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

By David de Ferranti, Currency Analyst, DailyFX

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