GBP/USD Rally Stalls As Hanging Man Hints At A Retreat

Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Morning Stardelivered several successive up-days
  • Hanging Man formation hints at potential retreat

After sustaining several consecutive up-days on the back of a Morning Star formation the Pound has retreated yielding a Hanging Man candlestick. The reversal pattern suggests a potential retreat, however it has yet to be confirmed by a successive down period.

GBP/USD: Morning Star Heralded Upside Breakout

GBP/USD Rally Stalls As Hanging Man Hints At A Retreat

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

Drilling down to the four hour chart; a Bearish Engulfing pattern suggests the potential for an intraday dip to support at 1.7100.

GBP/USD: Bearish Engulfing Formation Hints At Intraday Dip

GBP/USD Rally Stalls As Hanging Man Hints At A Retreat

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

By David de Ferranti, Currency Analyst, DailyFX

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