The GBPUSD formed a 2 Bar reversal at the end of last week. This price action setup has sent price lower to where it now has reached support.
Price during yesterdays session produced an inside bar that could not close below this support level. Until price moves from this level either through it lower or back higher the best play is to sit on the sidelines of this pair and wait for a clear direction.
Below is the 2 day chart of this pair. This has the 2 Bar reversal from the 1 day chart blended to show a Pin Bar on the 2 day chart.
GBPUSD 2 DAY CHART – July 25 2012