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Forex Trade Setups Commentary: GBPUSD Sell Signals, 10-15-10

The GBPUSD formed price action sell signals on the 1hr, 4hr, and daily charts on Friday after a false break of Thursday’s highs. We discussed the 1hr sell signal in the member’s forum and posted up a chart just before it came off to the downside.

The 1hr chart formed a very large pin bar reversal, this pin bar is very large and well-defined and represents what a quality 1hr pin bar should look like. There was also a very nice 4hr pin bar that signified rejection of Thursday’s highs.

The Daily GBPUSD chart also formed a bearish pin bar that is counter-trend but could influence lower prices next week. We can see a fairly obvious support level near 1.5750.

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For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.

Commentary:

The U.S. dollar regained some lost ground on Friday against all the majors with the exception being a small loss to the Japanese yen.

Comments from the U.S. Fed Chairmen Ben Bernanke added support to investors’ expectations for more stimulus from the central bank, but whether or not the market has already priced in this expected stimulus is still up for debate.