The GBPAUD has smashed lower on the 4hr chart, managing to take out a lot of minor levels and push well lower. This move lower was kicked off by a large false break Pin Bar that set a trap to take the bears out of the market.
Once price had pushed passed the lows of the Pin Bar, price got a lot of momentum and ended the session finishing well lower from the daily high.
Price is now sitting at the lows that we saw price find support and bounce higher from last time. This bearish momentum has been strong and could help break this near term support. If the support does break price may continue on to the next support area around 1.4400.
Traders who love to trend trade and trade with the recent momentum could now look for any rotations higher to get into this move, should the right price action setup present.
GBPAUD 4HR CHART | 2 APRIL 2013
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Jon, when you said "This move lower was kicked off by a large false break Pin bar that set a trap to take the bears out of the market," I think there is a typo there. Shouldn't the one that got trapped and kicked out of the market is the 'bulls' and not the 'bears'?