Forex Price Action Setup on GBPUSD
GBPUSD – 4hr Chart
As we’ve blogged about in our post this week with the GBPUSD’s 20ema rejections giving us a great trade signal to get into the trend, the pair hasn’t disappointed, doing a classic rejection off the 20ema, but this time starting a massive sell-off shedding over 400pips in a matter of 1.5days following this most recent rejection so hopefully you got to take advantage of the move.
Since the move has stalled just above the 1.5300 figure, it has created an inside bar so watch for a break of the lows and possible continuation move from here as we expect further losses in the pair as ironically, the USD seems to be a safe haven as of late (as to why, we have absolutely no ideas as the US markets are looking more fragile with BAC and CITI on a death watch at this point, even after Buffet’s investment which, ahem, is now negative by $3). Regardless, if the market has a taste for dollars and offers us trade setups we can make money from, albeit so watch for a break of the lows.
Another possible scenario is a friday pullback to the 20ema which offers a great opportunity to sell the rally.
Also make sure to check out our new article on the Global Major Indices Sell-Off today and what further moves you can expect.
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