Talking Points
- GBP/USD Technical Strategy: Sidelines Preferred
- Dark Cloud Cover Candlestick Pattern Awaits Confirmation
- H4 Chart Offered Early Warning Of Weakness Near 1.6500
GBP/USD has flashed a warning sign for a possible retreat in the form of a Dark Cloud Cover formation near 1.6350. Yet with confirmation lacking the warning is best heeded, but not acted upon. A successive down-day would be required to indicate the potential for the pair to revisit its recent lows.
GBP/USD: Dark Cloud Cover On The Radar
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart offered an early indication of a potential pullback for GBP/USD. An Evening Star formation near 1.6500 suggested the bears had regained control of prices. Yet the pair is left with a void of major reversal signals at the outset of the week. This suggests awaiting a more constructive setup may be a more prudent approach to playing the Pound.
GBP/USD: Awaiting Clearer Directional Guidance From Candlestick Signals
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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