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Talking Points

  • 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

GBP/USD Woes Continue With Bullish Candlesticks Missing

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

GBP/USD Woes Continue With Bullish Candlesticks Missing

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

By David de Ferranti, Currency Analyst, DailyFX

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