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GBP/USD Bearish Candlestick Pattern Casts Immediate Risks Lower

Published 10/31/2014, 05:58 AM
Updated 07/09/2023, 06:31 AM

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.

 <span class=GBP/USD: Evening Star Casts Risks Lower" title=" GBP/USD: Evening Star Casts Risks Lower" width="474" height="295">

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.

<span class=GBP/USD: Bearish Pattern Emerges In Intraday Trade " title="GBP/USD: Bearish Pattern Emerges In Intraday Trade " width="474" height="295">

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