Wednesday, July 30, 2014

GBP/USD Woes May Continue With Bullish Reversal Patterns Absent




Talking Points



  • GBP/USD Technical Strategy: Shorts Preferred


  • Evening Star Offered Warning of Weakness Ahead


  • Void Of Bullish Signals Casts Doubt On A Recovery


GBP/USD could see continued declines following an Evening Star formation on the daily and an absence of bullish reversal candlesticks. A daily close below nearby support at 1.6900 would likely see buyers step in at the 1.6830 mark.



Traders should note that a string of top-tier US data over the session ahead may spark significant volatility that voids some of the technical signals offered.



GBP/USD: Evening Star Offered Ominous Warning Near Recent Highs


GBP/USD Woes May Continue With Bullish Reversal Patterns Absent


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



The four hour chart reflects a similar story to the daily with a void of key reversal signals casting doubt on a potential recovery for the Pound. However, GBP/USD’s descent may be slowed by nearby support resting at the psychologically-significant 1.7000 handle.



GBP/USD: Absence of Reversal Signals Casts Doubt On A Recovery


GBP/USD Woes May Continue With Bullish Reversal Patterns Absent


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



By David de Ferranti, Currency Analyst, DailyFX



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GBP/USD Woes May Continue With Bullish Reversal Patterns Absent

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