Shooting Star Pattern Forms in GBP/AUD

A shooting star Japanese Candlestick pattern (bearish reversal) has formed on the GBP/AUD daily chart. The pattern appeared in the context of a strong uptrend dating back to September of 2017. From the close of yesterday’s candle, price has already dipped about 65 pips at the time of this writing.

A confluence of bearish signals formed as stochastics crossed from above to below the 80 mark. An interesting potential support level to the downside lies at the prior double top at 1.8000.

The Aussie was slammed earlier this week, falling to fresh 2018 lows. The move was driven by renewed China trade fears after reports emerged that President Trump is considering a crack down on Chinese companies investing in the US.

Cable currently remains above the key psych level of 1.40 despite a burst of strength in the US dollar on Wednesday. The greenback was lifted after GDP data showed that the US economy grew at a faster pace than initially thought in the fourth quarter.

Economic events for Thursday include Canada GDP, US Initial Jobless Claims and Chicago PMI.