Talking Points
- GBP/USD Technical Strategy: Sidelines Preferred
- Piercing Line Pattern Finds Limited Follow-Though
- Shooting Star Formation Awaiting Confirmation
GBP/USD’s recovery has faulted as the appearance of a Shooting Star formation warns of a further correction. If confirmed by a successive down day the key reversal pattern could herald a retest of the pair’s recent lows at 1.6526. Whereas a daily close above 1.6660 would be required to warn of a small base and negate a bearish technical bias.
GBP/USD: Shooting Star Warns Of Weakness
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
An Evening Star offered an early indication of a possible correction for GBP/USD. A recovery looks questionable in the absence of bullish signals. Yet the downside may be limited given the proximity of current prices to nearby buying support.
GBP/USD: Intraday Bearish Signal Offered Early Warning
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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