The GBPUSD made a move lower to test its Asian session lows early in the U.K. session, then reversed upward. As the U.S. session got underway, it made its pullback high around 1.3874… followed by a large bearish engulfing candle.
A short was taken risking 15 pips for a potential 39 pips to our daily at 1.3821. Price moved down to its Asian session low and was able to close beneath it. As price approached our target it accelerated through it and we moved our profit stop lower to protect our targeted level. Price continued lower down through yesterday’s low and long lower wicks began to form as buyers entered near the 1.3800 figure. We moved our profit stop to the 1.3800 figure and the trade was closed on a retest.
Traders will be paying attention to the U.S. JOLTs job openings number tomorrow early in the U.S. session and the FOMC minutes, 2 hours after the London close.
Good luck with your trading!