After the Asian session move up this morning both GBPCAD and GBPAUD stopped at easily identifiable levels for several hours and had negative close 3 bar reversals (below the previous 2 candle closes) with little/no lower wicks. Great set ups for further moves lower.
I like to watch for confirmation across more than 1 pair. Either from various gbp crosses, see above, or against a specific currency eg gbpaud and euraud. This morning several gbp pairs closed lower and in addition euraud also closed lower.
Picking the right pair to trade doesn't work every time but in this case gbp was weak. Then euraud also confirmed, it would suggest gbpaud a good option to trade (gbp weak across more than 1 pair, aud strong across more than 1 pair). However any aud sell (eur or gbp) would have worked out as aud was strong against both and any gbp sell would have worked at it was weak (against cad and aud).
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