GBP/USD Bearish Candlestick Pattern Casts Immediate Risks Lower
Dailyfx | Oct 31, 2014 05:58AM ET
Talking Points
- GBP/USD Technical Strategy: Shorts Preferred
- Evening Star Formation Opens Risk Of Further Declines
- Bearish Engulfing Pattern Emerges In Intraday Trade
GBP/USD may be at risk of further declines after the emergence of a somewhat asymmetric Evening Star formation. The bearish reversal pattern casts the spotlight on the 2014 lows near 1.5880. A close above the 1.6170 ceiling would be required to negate the signal and suggest a bullish bias.
A Bearish Engulfing formationon the four hour chart offers an additional warning of weakness for the Sterling. Clearance of intraday buying interest at the 1.5960 barrier may herald a revisit of 1.5880.
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