GBP/USD Recovery Falters As Dark Cloud Cover Awaits Confirmation


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Talking Points

  • GBP/USD Technical Strategy: Sidelines Preferred
  • Dark Cloud Cover Awaiting Confirmation
  • Downside Risks Remain In Intraday Trade

GBP/USD has seemingly lost some upward momentum as suggested by a Dark Cloud Cover formation near the 1.6170 barrier. Critically the key reversal pattern awaits confirmation from a successive down-day to be validated. Downside risks are centered on the pair’s recent lows near 1.5880. In the alternative scenario a daily close above 1.6170 would open the potential for a run on the recent 1.6400 peak.

GBP/USD: Dark Cloud Cover Offers Ominous Warning Near 1.6170

GBP/USD Recovery Falters As Dark Cloud Cover Awaits Confirmation

Daily Chart - Created Using FXCM Marketscope 2.0 Volume Indicator Available Here

The four hour chart offered an early warning of a potential pullback during intraday trade. The Dark Cloud Cover pattern and slide under 1.6130 warns of a deeper setback for the Sterling.

GBP/USD: Bearish Pattern Casts Risks Lower In Intraday Trade

GBP/USD Recovery Falters As Dark Cloud Cover Awaits Confirmation

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

By David de Ferranti Currency Analyst DailyFX

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