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.
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