TheForexGuy
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The GBPUSD has recently suffered a hard drop of 8 days of intense selling, moving price from a larger range structure top, sharply to the bottom support.
During the 8 day sell off we haven't seen any bullish closing days! Now the market has reached a major support level, the bulls have finally decided to step in and give us a bullish closing day - demonstrating the support level is being defended.
This has completed a 2 candle bullish rejection pattern, which is a classic reversal signal that could be the catalyst for a much needed correction.
If the market rebounds up wards, we could see a correction back to a swing level in the middle of the range, or price could complete another range cycle and re-test the range top again - which would generate good returns for this setup.
- The Forex Guy