GBPUSD Pin Bar Rejection at Key Level. Will it Reverse? Jun 6th

GBPUSD – Forms Pin Bar Rejection at a Key Level
After the ECB Press Conference, the USD got hammered, particularly vs. the GBP climbed over 200 pips on the day. In the process, the pair formed a pin bar rejection at the Mar-May swing highs at 1.5612. But notice how the wick is above the key level, suggesting false break, while the close is below on the 4hr chart.

Will the pair reverse?

I’m thinking it will not because of a) look at the 1hr charts and notice there is no follow through selling, just consolidation after, and b) the 4hr bar leading up to the pin bar is quite strong. Now this could mean exhaustion or climax, but I think there were a lot of bidders behind this price action, thus sellers will have to liquidate those buyers to make any headway. I think they will fail on this, so am passing on this pin bar.

Thus, I’m expecting higher prices, and will look for a corrective pullback to get long, around 5461 or 5520. Price could break above 5611, then hold above this, suggesting a role reversal, and thus more upside. Only harbinger in this plan is the NFP tomorrow, which is certainly a wild card that can change the game.

pin bar rejection key level exhaustion climax price action gbpusd

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Buddhist, Trader and Philanthropist

I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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  • Grigore

    The buyers are strong indeed. Let’s wait for more price action development before enter a trade.

  • Amis

    Hello Chris,
    Why you haven’t consider the Parabolic nature of the PA during your analysis?


  • arslan

    hello chriss plz inform me about charting system which you are currently using.i want to purchase a efficient guide me about 1 month ago but now i forgot those software name please inform me about and if possible send me link of those charting software web site.plz inform me about commodities and currencies charting system monthly payment?