Talking Points
- GBP/USD Technical Strategy: Shorts Preferred
- Absence of Reversal Patterns Casts Risk Lower
- H4 Chart Casts Doubt On A Corrective Bounce
GBP/USD has pushed past the critical 1.5880 barrier with key reversal candlesticks absent. This suggests the risks may be skewed to the downside for the pair and opens a potential descent on the Mid-September 2013 low near 1.5770. A climb back over the 1.5880 hurdle would be required to negate a bearish technical bias.
GBP/USD: Clears Key Barrier With Bullish Signals Absent
Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Similarly, the four hour chart leaves little indication of a potential corrective bounce for the Sterling. Given the context afforded by the daily this suggests the currency may be exposed to further weakness.
GBP/USD: Lacking Reversal Signs In Intraday Trade
4 Hour Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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