Talking Points
- Strategy: Short, Stop: 1.5770 (Close), Target: 1.5450
- Doji Suggests Bulls Reluctant To Return
- Short Body Candles Indicate Indecision
GBP/USD has posted a Doji on the daily, which does little to inspire confidence in the reversal signal offered by a Morning Star pattern. This leaves broader negative technical cues to linger. Further, the presence of a short-term downtrend puts the focus on 1.5585, which if broken may open the 1.5425 floor (the late August ’13 low).
GBP/USD: Doji Does Little To Confirm Morning Star Pattern
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.
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
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