Talking Points
- GBP/USD Technical Strategy: Sidelines Preferred
- Hanging Man Formation Casts Risks Lower
- H4 Dojis Suggest A Recovery May Prove Difficult
GBP/USD has faced further weakness after a Hanging Man formation suggested a shift in sentiment for the pair. The daily close below the 1.6270 floor warns of an extended decline and retest of the 2014 lows near 1.6060.
GBP/USD: Hanging Man Keeps Risks Lower
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart suggests the bears have firmed their grip on prices. An ensemble of Doji candlesticks near 1.6250 indicated the bulls were reluctant to reclaim the 1.6250 mark. This casts some doubt over the potential for a recovery over the session ahead and leaves the immediate risks skewed to the downside.
GBP/USD: Bulls Retreat As Dojis Signal Reluctance To Reclaim 1.6250
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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