It didn’t take long for GBPUSD sellers to extend prices below the 1.3300 handle this week. I mentioned this level on Sunday as one that if broken could open up lower prices.
You’ll note from the chart below that it was Tuesday’s session that closed below 1.3300 at 5 pm EST. Remember, I use New York close charts, which are essential for trading price action.
We then got some consolidation during Wednesday’s session via an inside day. And although GBPUSD bulls extended yesterday’s prices well above 1.3300 intraday, they failed to close the session above the level leaving a bearish pin bar in their wake.
The combination of the inside day followed by a pin bar gives us an inside bar pin bar combo. It’s a rare pattern, but one that has a relatively high success rate when employed on the daily time frame.
As long as 1.3300 holds as resistance on a daily closing basis (5 pm EST), I will stay bearish the GBPUSD. Key support comes in at 1.3040, although I’d expect to see a few bids develop if the pair retests the current week’s low at 1.3204.
Keep in mind that non-farm payroll is less than 24 hours away. The event is at its regularly scheduled time of 8:30 am EST. It’s sure to cause a stir for a pair like the GBPUSD, so be sure to factor this into your decision-making process.