Bearish Pin Bar Keeps GBP/USD Under Selling Pressure


GBP/USD gave up the early gains on Thursday, leaving a classic bearish pin bar on the day chart, the pair didn’t move a lot on Friday due to holiday and the same thin volume trading is likely today as it is the Easter holiday across many countries.

Technical Analysis

As of this writing, cable is being traded near 1.6807. A hurdle can be seen around 1.6841, the high of the bearish pin bar. A break above the pin bar will again activate the bullish momentum, threatening the 1.6900 handle. The sentiment is extremely bullish due to repeated Higher High (HH) and Higher Lows (HL) in the near past.


On the downside, the pair is likely to find a support near 1.6689, the 23.6% fib level, ahead of 1.6635 where both the 55 Simple Moving Average (SMA) and channel support are currently sitting in. A daily closing below the long term channel support will push the pair into deeper correction phase, validating a dip towards the 1.6250 support area; this however appears to be a less likely scenario due to extremely positive fundamental outlook of the UK.

Chicago National Activity Index

Today, the Federal Reserve Bank of Chicago is scheduled to release the national activity index report. The report aims at analyzing the overall economic situation and inflation outlook. The index was seen standing at 0.14 point in February; higher reading in March will be seen as bullish for USD/JPY and vice versa.

US Leading Indicator

Today the Consumer Board of the US is scheduled to release the leading indicator for the previous month. The indicator attempts to measure the future economic activity such as the rate of unemployment, jobless claims, yield curve, new houses construction, average manufacturing workweek, stock prices etc. According to the median projection of different analysts, the reading of the indicator increased by 0.7% last month as compared to 0.5% in the month before, better than expected actual outcome will be seen as bearish for EUR/USD and vice versa.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: Gold and Commodity Currencies Resume Their Decline Market Analysis: EUR/USD Takes Hit While USD/CHF Surges Market Analysis: The Yen and European Currencies Headed to New Lows Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience USD/JPY Analysis: For the First Time This Year, the Rate Exceeds 149 Yen Per Dollar

Latest articles

Forex Analysis

Market Analysis: Gold and Commodity Currencies Resume Their Decline

Despite the fall in the US CB Consumer Confidence Index for September and the decline in new home sales for August yesterday, one could observe a strengthening of the dollar in major currency pairs. It is worth noting that in


AMZN Stock Analysis: 4 Reasons to Doubt the Bullish Outlook

After the Fed signaled last week that rates may be higher for longer than expected, the US stock market has received a strong bearish boost. And among the most vulnerable assets were technology stocks (considered risky). The NASDAQ index has

Financial Market News

Inflation Still Dogs the Economy: What Are the Central Banks Doing About It?

High inflation continues to grip European economies, putting central banks in a tight spot as they grapple with the triple dilemma of slowing growth, persistent inflation, and the impact of unprecedented rate hikes. In September, we witnessed a shift in

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.