GBPUSD Pin Bar Signal at 1.6900
GBPUSD – Forms a Counter Trend Pin Bar At 1.6900
In a slow day with the UK Labour Holiday, the cable has now climbed for a 4th day in a row. The pair has formed a pin bar signal, which is either the kiss of death for this breakout, or a mild rejection that will lead to a pullback, and thus buying opportunity.
I’m leaning towards the latter, as there still is no evidence of a reversal (yet). So I’ll look for pullbacks towards 1.6820 or 1.6781 (~Daily 20 ema) for opportunities to trade with the trend.
If the pair sells off violently from here, and closes below the latter level and daily 20ema + dynamic support, we may see some profit taking from current bulls, and thus further unwinding.
Read our latest forex strategy article on Trading the False Break Part 2
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