GBPUSD: Attractive Location For Long, But No Setup. Yet.

OANDA:GBPUSD   British Pound / U.S. Dollar
GBPUSD: Price is forming a pin bar on top of the bullish trend line which also happens to be in a minor support zone . This is an attractive place to look for long swing trade setups or to lock in profit on shorts.

The 1.4131 to 1.4065 zone (.618 of recent bullish swing) is a lower risk area to participate in this market which is somewhat bullish on the short term. The big picture is a different story (See Elliott Wave count on S.C.). Also the fact that price has rejected the 1.4325 level so dramatically begins to establish a very broad lower high (below 1.4500 level). This is in line with the general bearish outlook on the weekly time frame.

With that being said, taking a swing trade long is still possible, it is just that profit expectations need to be within reason since the long side is limited in terms of potential. At the moment, IF a swing trade setup develops, a target below the .14200 makes more sense compared to expecting a new high over 1.4300.

Also keep in mind, even though there is a sign of a bullish reversal on this chart, the market has about 12 hours before the candle closes. This means it can still close weak and the pin bar can disappear. I will be watching the Sunday night candle to determine if a long swing trade setup is present or not. Updates available on S.C. only.
Marc Principato, CMT |Author: Analyze Any Financial Market Like The Pros Using Price Action| | Cofounder (S.C.)

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