Welcome Traders 😉
In Friday, right after closing we could spot the pinbar created on GBP/JPY. Same situation repeated today – price negated gains from European session. These two similar candles at such specific level as 185.00 means only one. Technics enforce come back to fall scenario, specially if you spot differences between dynamics of gains and falls. If the classic candle patterns works, we will have to wait couple of days to actually see GBP/JPY falling.
There might be another pinbar, creating on USD/CAD tonight. But this one is not actually the sign of power of demand. This candle is still in borders charted by last bearish candle, which means that we have to treat this pinbar cautiously. But on the another hand, there is longterm trendline near the price, which might be considered as a bullish pattern. Anyway there are some chances to see release gains after almost infinite fall during last days.
Currently weak position of GBP might be a great opportunity to try selling sterling versus strong AUD. Technicaly, we are looking at the breaking through support, which means that next probable support levels are marked by red lines. We can play todays candle, or wait for a first test of overcame support. Strategy worth to mention is to close half of position at first red line, waiting for getting through another one. To sum up, this chart looks very bearish.