Talking Points
- GBP/USD Technical Strategy: Sidelines Preferred
- Hanging Man Fails To Find Follow-Through
- Awaiting Clearer Directional Signals For Guidance
GBP/USD continues to cling to the 1.6270/80 mark as traders look past a Hanging Man formation on the daily. The lackluster response to the bearish reversal signal casts some doubt on the potential for pullback. Yet against the backdrop of a downtrend on the daily a recovery is also questionable. On balance this suggests a consolidation may ensue, and leaves a more constructive setup desired before adopting fresh positioning.
GBP/USD: Traders Look Past Bearish Reversal Pattern
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Choppy price action alongside a pair of Dojis in intraday trade indicates indecision amongst traders. Selling pressure remains evident at the 1.6290 barrier, yet a void of bearish patterns does little to strengthen the case for a correction.
GBP/USD: Dojis Denote Indecision Near Intraday Resistance
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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