The GBP/USD pair went back and forth during the session on Wednesday as the 1.52 level was initially broken. However, by the end of the session we had bounced back above that support level, and in fact formed a very neutral looking long-legged doji. This candle suggests that we could get a little bit of a bounce here, but quite frankly the easiest way to play this type of candle is to trade in the direction of the breakout. In other words, if we break above the highest from the session, it’s time to buy. On the other hand, we break the lows from the session, it appears that the bearishness is taking back over, and prices will continue to drift lower.
Written by FX Empire