Talking Points
- Strategy: Flat, Short Pending On Close Below 1.5585
- Awaiting Guidance Near Key Technical Barrier
- H4 Short Body Candle and Doji Medley Indicates Indecision
GBP/USD is kissing key resistance at the 1.5800 handle with a void of reversal candlesticks clouding the outlook for the pair. A bearish reversal signal near the barrier would recast the risk lower towards the 1.5585 floor. In the alternative scenario an upside breakout would herald a potential return to the 1.6170 ceiling.
GBP/USD: Testing Key Resistance Near 1.5800
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour timeframe paints a similar picture to the daily. A medley of short body candles and Doji formations further indicates a lack of conviction amongst traders near 1.5800.
GBP/USD: Medley Of Short Body Candles Indicates Indecision
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @DaviddeFe
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.
original source
