Signal Candle & Trade Decision
Shortly after 15:00 GMT, the price hits the support level of 1.6230 after falling quite sharply. It falls as low as 1.6216.
At 15:30 GMT, U.S. data is released showing slightly higher inflation than expected.
The pair rallies strongly, forming a pin bar at the close of the hourly candle with both open and close in its top quarter, with the wick rejecting the support level of 1.6230.
We decide to enter long if the candle breaks to the upside by 1 pip during the next hour, with our stop loss just below the day's low.