Check out today's bar on the daily chart of GBP/USD.  It looks to me like it could be a Pinocchio bar (or pin bar).  Don't know what a pin bar is?  It's basically a bar that opens near the prior day's close, but whose high (or low) is much greater (or much less) than the surrounding bars' highs (or lows).  It is named a Pinocchio bar because its long "nose" lies about where prices are headed.  If its "nose" points up above recent highs, but sellers were able to push the price back down to the other extreme for the day, then it's likely to continue to go lower.  A more detailed explanation can be found here.

There are things that I like about this particular pin bar.  I like the fact that its high is significantly higher than the prior three bars' highs and that its open and close are quite close to the low of the day.  I also like the fact that the bar respects the down trendline of the overall trend (Pin bars are more reliable if they occur at a significant point of support or resistance or confluence, etc...).  You'll also notice that there have been two recent days (Mar 26 and Apr 3) were pin bars that ended up going lower.

So, I think I'll play this one and see what happens.

• Order = Sell Limit
• Limit Price = 1.9676 (10 pips below today's low)
• Stop Loss = 1.9853 (10 pips above recent high)
• 1st Profit Target = 1.95875 (1/2R)
• 2nd Profit Target = 1.94990 (1R)
• 3rd Profit Target = Let it ride