Thursday, November 27, 2014

GBP/USD Awaiting Clearer Guidance Near Range-Top




Talking Points



  • Strategy: Flat, Short Pending On Close Below 1.5585


  • Awaiting Guidance Near Key Technical Barrier


  • H4 Short Body Candle and Doji Medley Indicates Indecision


GBP/USD is kissing key resistance at the 1.5800 handle with a void of reversal candlesticks clouding the outlook for the pair. A bearish reversal signal near the barrier would recast the risk lower towards the 1.5585 floor. In the alternative scenario an upside breakout would herald a potential return to the 1.6170 ceiling.



GBP/USD: Testing Key Resistance Near 1.5800


GBP/USD Awaiting Clearer Guidance Near Range-Top


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



The four hour timeframe paints a similar picture to the daily. A medley of short body candles and Doji formations further indicates a lack of conviction amongst traders near 1.5800.



GBP/USD: Medley Of Short Body Candles Indicates Indecision


GBP/USD Awaiting Clearer Guidance Near Range-Top


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 Awaiting Clearer Guidance Near Range-Top

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