GBP/USD Finds Few Cues From Candles As Sideways Drift Continues

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

GBP/USD Finds Few Cues From Candles As Sideways Drift Continues

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

GBP/USD Finds Few Cues From Candles As Sideways Drift Continues

4 Hour Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

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