Morning’s attempt to establish a low for the GBPUSD initially looked very impressive. A new low of 1.2684 was tested and then bulls returned to action creating H4 PIN BAR with a long lower wick. Attempt to rebound lasted until 10:30 when investors learned reading of the PMI for services in the UK. PMI was better than forecasts which resulted in downward movement again.
In the medium term (for the moment) the case is clear: GBPUSD is in a strong downward trend and no single bullish candle will change that. However, you can already slowly expect that soon there would be some rebound. Surely this will not change the trend, but growth can occur due to profit taking from short positions by some investors. And it can be a significant gain considering that for the last week GBPUSD fell by as much as 300 pips and at that time there wasn’t any correction.
