Similar to how the Euro I discussed on Tuesday reversed with an engulfing bar + pin bar combo, the Cable is possibly attempting to bottom after losing ground for six days in a row. After forming a final flag pattern to end yesterday and start today, the pair rallied off of 1.5825 with a strong bullish piercing bar, followed by a pin bar.
Although it's not as strong a price action confirmation as the Euro signal was, it still has some strength to it and may see follow through. First hurdle for the pound will be to close above the 20ema and 1.5878. After this, 1.5900 is on deck, but then 1.5950 could be under attack shortly. 1.5825 is the short term line in the sand for the bulls to hold and the bears to take out for more downside play.
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