Dear Price Action Setup Traders
The trade from yesterday was just triggered and is not showing a great signs of bullish momentum. There is a bearish engulfing pattern on the daily time frame, which is not a great indication, since it has formed on the resistance area. If you are in a more aggressive mood, you could let this position reveal, otherwise, you might concentrate on the daily price action setup from today.
I am looking at a contrarian trade again. I do not find those trades really profitable in the long term, but this is the only opportunity I do see for tomorrow. The best thing is to stay on the sidelines when you are not sure about a trade, but I am still going to cover what I see. We are in a major bearish trend and there is a pin bar on the daily chart of GBP/USD. The price went down to the 1.5100 level and then found some fresh buyers, who pushed the price up to the level of 1.5170. A possible trade of this pin bar would be going long at the level of 1.5150 and placing a stop loss just under 1.5050. The first target is the level of 1.5300 and then possibly 1.5500. It all comes down to price action in the next few sessions and whether we are going to see bullish activity or a bearish reversal again. That is why, this trade is a riskier one, but it is still a pin bar.