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GBPJPY Corrective Price Action After 1-Bar Impulsive Selling | Jul 31
GBPJPY – Is the Current Pullback Impulsive or Corrective
I got a lot of questions on this in the daily members commentary, so wanted to discuss this one today as it offers some challenging price action reads for traders.
After the long coiling price action + inside bars we talked about earlier this week, the GBPJPY busted higher as the bulls stepped in heavy from the FOMC minutes taking short term control. The pair then formed a corrective structure (which you can see on the 1hr chart below), which should have led to higher prices.
Instead, the pair had a one bar impulsive leg lower, then corrected for +15 hours. This second corrective structure has more bullish elements in it than the prior one above, as there are more wicks on the bottom, including a bullish pin bar, along with a subtle building of the lows.
For now, watch for a potential pullback to the consolidation base before bulls step in. If any bulls are still interested in supporting the bullish picture, would buy on the top of this base. If this area fails, then expect stops to be tripped.
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