Friday, October 31, 2014

GBP/USD Bearish Candlestick Pattern Casts Immediate Risks Lower




Talking Points



  • GBP/USD Technical Strategy: Shorts Preferred


  • Evening Star Formation Opens Risk Of Further Declines


  • Bearish Engulfing Pattern Emerges In Intraday Trade


GBP/USD may be at risk of further declines after the emergence of a somewhat asymmetric Evening Star formation. The bearish reversal pattern casts the spotlight on the 2014 lows near 1.5880. A close above the 1.6170 ceiling would be required to negate the signal and suggest a bullish bias.



GBP/USD: Evening Star Casts Risks Lower


GBP/USD Bearish Candlestick Pattern Casts Immediate Risks Lower


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



A Bearish Engulfing formationon the four hour chart offers an additional warning of weakness for the Sterling. Clearance of intraday buying interest at the 1.5960 barrier may herald a revisit of 1.5880.



GBP/USD: Bearish Pattern Emerges In Intraday Trade


GBP/USD Bearish Candlestick Pattern Casts Immediate 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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GBP/USD Bearish Candlestick Pattern Casts Immediate Risks Lower

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