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GBP/USD: Recovery Falters As Dark Cloud Cover Awaits Confirmation

Published 10/22/2014, 02:30 AM
Updated 07/09/2023, 06:31 AM

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 Daily Chart

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 4 Hour Chart

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