Dear Price Action Traders,
After seeing a great move from yesterday’s signal today’s Daily Price Action Setup is coming from the GBP/USD pair. It became obvious that the 1.5900 level could not hold and the pair probed the level of 1.5800, engulfing the previous day’s candle. Having the right trading discipline, traders trading off the Daily charts should have waited until today’s close and considered a short position. Our daily price action is showing us a bearish-engulfing pattern and this is a clear indication of more bearish momentum that is on the way. The psychology of trading shows us that some more fresh sellers joined the traders who were already established in this trade. All this means that the price is ripe for new lows and a trigger at the current price is set to sell the pair. If traders want to minimize the downside risk, they should consider opening a position upon a retracement to the 1.5822 level and then take a short position. The stops should be placed above the level of 1.5945. First target is the level of 1.5700 and then 1.5500, but it all will come down to the price in the end- how would it react with those levels.