GBP/USD Rebound Falters As A Hanging Man Shifts Risks Lower

Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Hammer Confirmation Warns Of Weakness For The GBP
  • Spotlight Cast On The 2014 Low Near 1.6060

GBP/USD’s recovery has stumbled after the appearance of a Hanging Man candlestick, which has left the pair with bearish cues. The key reversal pattern has been confirmed by a successive down-day which casts the immediate risk lower. Buying interest is likely to be renewed at the 1.6060 mark.

Traders should note that there are several significant pieces of event risk over the remainder of the week that hold the potential to catalyze significant volatility for the Pound. This may negate technical signals offered.

GBP/USD: Recovery Falters As A Hanging Man Warns Of Weakness

GBP/USD Rebound Falters As A Hanging Man Shifts Risks Lower

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

Choppy price action in intraday trade has left few candlestick signals to take cues from. Selling pressure remains evident at the 1.6290 mark, yet a void of bearish patterns does little to confirm the warning signs offered by the daily.

GBP/USD: Consolidation Leaves Void Of Key Reversal Patterns

GBP/USD Rebound Falters As A Hanging Man Shifts Risks Lower

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

By David de Ferranti, Currency Analyst, DailyFX

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