- GBP/USD Technical Strategy: Sidelines Preferred
- Shooting Star Sets The Stage For Further Declines
GBP/USD has plunged below the 1.6500 handle following a bearish signal offered by a Shooting Star formation on the daily. The key reversal pattern alongside a spike in volume suggests the potential for further weakness. A daily close below the nearby 1.6450 mark could open the 2014 lows near 1.6255.
GBP/USD: Shooting Star Delivers Declines
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
An Evening Star offered an early indication of a possible correction for GBP/USD. While the pair has managed to regain its footing at 1.6445, a recovery looks questionable given the absence of bullish signals.
GBP/USD: Intraday Bearish Signal Offered Early Warning
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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