18 Oct 2016
GBP/USD closed hesitant to pick direction
The emergence of a Southern doji pattern on the GBP/USD daily chart suggests a certain degree of exhaustion in the market.
During a decline, this candlestick pattern usually changes the market's short-term trend from down to neutral. In this case, with the RSI below 30% on this time frame, the likelihood of a reversal from oversold territory increases.
Additionally, an ADX above 30 is indicative of a persistent trend at least. Technically oriented traders may use this signal to liquidate shorts, sell puts, and move down stops.
During a decline, this candlestick pattern usually changes the market's short-term trend from down to neutral. In this case, with the RSI below 30% on this time frame, the likelihood of a reversal from oversold territory increases.
Additionally, an ADX above 30 is indicative of a persistent trend at least. Technically oriented traders may use this signal to liquidate shorts, sell puts, and move down stops.