GBP/USD Recovery Stumbles Amid Void Of Reversal Candlesticks

By DailyFx | August 27, 2014 AAA

DailyFX.com -

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

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. Ranges Persist in USD-Pairs Post-FOMC Meeting
    Forex News

    Ranges Persist in USD-Pairs Post-FOMC Meeting

  2. GBP/USD struggles to regain 1.6000
    Forex News

    GBP/USD struggles to regain 1.6000

  3. GBP/USD in bearish mode - UOB Group
    Forex News

    GBP/USD in bearish mode - UOB Group

  4. GBP/USD below 1.6000, much to bears' delight
    Forex News

    GBP/USD below 1.6000, much to bears' delight

  5. GBP/USD trading near the 1.5980 region - FXStreet
    Forex News

    GBP/USD trading near the 1.5980 region - FXStreet

Trading Center