News Column

GBP/USD Evening Star Suggests Intraday Dip As Recovery Stalls

May 13, 2014

David de Ferranti

Talking Points



  • GBP/USD Technical Strategy: Shorts Preferred
  • Key support remains at the critical 1.6820 mark
  • Evening Star in intraday trade warns of a dip





    GBP/USDhas bounced off key support at 1.6820 after posting some modest declines on the back of a Harami candlestick pattern. Given the absence of a bullish reversal signal on the daily and nearby resistance at 1.6900, the pair may struggle to continue its recovery.





    GBP/USD: Struggles Below 1.6900 Following Harami Pattern

    GBP/USD Evening Star Suggests Intraday Dip As Recovery Stalls





    The four hour chart suggests some cause for concern. Following a retest of the ascending trendline and noteworthy resistance at 1.6900 an Evening Star pattern has formed. The reversal signal suggests the potential for an intraday dip back to the 1.6820/30 mark.







    GBP/USD: Recovery Stalls At 1.6990

    GBP/USD Evening Star Suggests Intraday Dip As Recovery Stalls











    Follow David on Twitter: @Davidde





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












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    Source: DailyFx


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