- GBP/USD Technical Strategy: Shorts Preferred
- Bullish Reversal Signals Absent On Daily Timeframe
- 1.6660 Offering Intraday Support To The Pound
GBP/USD’s plunge has left the pair void of bullish reversal candlestick patterns and casts the immediate risk lower. A daily close below the nearby 1.6660 floor would re-open the April lows near 1.6550. However, the surge in real trading volume warns of a potential reversal - a pattern evident over recent months for the Pound.
GBP/USD: Woes Continue In Absence Of Key Reversal Patterns
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Examining intraday price action on the four chart; a Doji formation near the 1.6660 barrier denotes indecision amongst traders. However, bullish reversal candlesticks remain glaringly absent, which casts doubt on the potential for an intraday recovery. Sellers are likely to keep the pair capped below former support-turned resistance at 1.6760.
GBP/USD: Doji Highlights Hesitation Near Intraday Support
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.