GBP/USD Doji Suggests Bulls Remain Reluctant To Return

DailyFX.com -

Talking Points

• Strategy: Short, Stop: 1.5770 (Close), Target: 1.5450

• Doji Suggests Bulls Reluctant To Return

• Short Body Candles Indicate Indecision

GBP/USD has posted a Doji on the daily, which does little to inspire confidence in the reversal signal offered by a Morning Star pattern. This leaves broader negative technical cues to linger. Further, the presence of a short-term downtrend puts the focus on 1.5585, which if broken may open the 1.5425 floor (the late August ’13 low).

GBP/USD: Doji Does Little To Confirm Morning Star Pattern

GBP/USD Doji Suggests Bulls Remain Reluctant To Return

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.

GBP/USD: Medley Of Short Body Candles Indicates Indecision

GBP/USD Doji Suggests Bulls Remain Reluctant To Return

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

By David de Ferranti, Currency Analyst, DailyFX

Follow David on Twitter: @DaviddeFe

To receive David’s analysis directly via email, please sign up here.

Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.