Monday, November 3, 2014

GBP/USD Dojis Suggest Indecision As Sideways Drift Endures




Talking Points



  • GBP/USD Technical Strategy: Shorts Pending


  • Bears Hesitate As Doji Candlesticks Emerge


  • Four Hour Chart Shows Signs Of Indecision


GBP/USD’s slow sideways drift has produced a pair of Dojis which signal indecision from traders. Despite the proximity to key support at 1.5880 a lack of bullish reversal patterns casts doubt on a bounce. This leaves a breakout below the nearby barrier to offer a fresh short opportunity.



GBP/USD: Dojis Suggest Indecision As Sideways Drift Endures


GBP/USD Dojis Suggest Indecision As Sideways Drift Endures


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



A similar Doji display on the four hour chart further suggests hesitation from the bears to lead the pair lower. A more convincing close below the 1.5960 floor would be required to pave the way for a descent on the 1.5880 barrier.



GBP/USD: Doji Emerges At Intraday Barrier


GBP/USD Dojis Suggest Indecision As Sideways Drift Endures


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 Dojis Suggest Indecision As Sideways Drift Endures

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