GBP/USD Woes May Continue With Bullish Reversal Patterns Absent

By DailyFx | July 30, 2014 AAA

DailyFX.com -

Talking Points

  • GBP/USD Technical Strategy: Shorts Preferred
  • Evening Star Offered Warning of Weakness Ahead
  • Void Of Bullish Signals Casts Doubt On A Recovery

GBP/USD could see continued declines following an Evening Star formation on the daily and an absence of bullish reversal candlesticks. A daily close below nearby support at 1.6900 would likely see buyers step in at the 1.6830 mark.

Traders should note that a string of top-tier US data over the session ahead may spark significant volatility that voids some of the technical signals offered.

GBP/USD: Evening Star Offered Ominous Warning Near Recent Highs

GBP/USD Woes May Continue With Bullish Reversal Patterns Absent

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

The four hour chart reflects a similar story to the daily with a void of key reversal signals casting doubt on a potential recovery for the Pound. However, GBP/USD’s descent may be slowed by nearby support resting at the psychologically-significant 1.7000 handle.

GBP/USD: Absence of Reversal Signals Casts Doubt On A Recovery

GBP/USD Woes May Continue With Bullish Reversal Patterns Absent

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. GBP/USD technical are mixed - Scotiabank
    Forex News

    GBP/USD technical are mixed - Scotiabank

  2. Still solid GDP growth - BNP
    Forex News

    Still solid GDP growth - BNP

  3. GBP/USD extends gains, nears 1.6100
    Forex News

    GBP/USD extends gains, nears 1.6100

  4. USDOLLAR Breaks October Downtrend, GBP’s GDP Rally Fizzles
    Forex News

    USDOLLAR Breaks October Downtrend, GBP’s GDP Rally Fizzles

  5. GBP/USD up on positive UK GDP - FXStreet
    Forex News

    GBP/USD up on positive UK GDP - FXStreet

Trading Center