BabyPips.com School of Pipsology
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After four consecutive days of pushing GBP/USD higher, it seems that pound bulls are getting exhausted and unsure whether to head further north or not. A doji has formed close to the pair's former highs around the 1.6300 major psychological level, hinting that bulls and bears are having quite the tug-o-war at the moment. Stochastic is deep in the overbought region, which means that pound bears are itching to pounce. If you're planning to short, wait for the next candlestick to close below the doji's low as confirmation of the reversal signal.
