After Thursday's ECB Press Conference, the USD got hammered, particularly vs. the GBP, climbing 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 wasabove the key level, suggesting a false break while the close is below on the 4hr chart.
Will the pair reverse?
I’m thinking not - 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. Sellers will have to liquidate those buyers to make any headway. I think they will fail, so I am passing on this pin bar.
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. The only harbinger for this plan was Friday's NFP.
GBP/USD" title="GBP/USD" width="1758" height="808">
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GBP/USD - Pin Bar Rejection Formed At A Key Level
Published 06/06/2013, 04:04 AM
Updated 05/14/2017, 06:45 AM
GBP/USD - Pin Bar Rejection Formed At A Key Level
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