GBP/USD – Sterling/dollar pin bar signal could see higher prices
Over the last several months, the GBP/USD has been swinging up and down within the confines of a trading range between 1.2100 and 1.2770. However, there is a key level of support piding this range, right through 1.2400 area, and recently price has been testing this level and remaining buoyant above it.
Today, as we can see in the chart below, price dipped below that level initially, before reversing and ending the day higher, forming a reversal bar known as a pin bar reversal. This price action pattern indicates that lower prices were rejected and that price could continue higher from here.
Given the key support level this pin bar formed at, it has plenty of ‘weight’ behind it and so we believe there’s strong potential for prices to push higher and re-test the highs near 1.2700 – 1.2770 in the coming days.
GBP/USD Daily Chart
Original article source: LearnToTradeTheMarket.com