The GBP/USD market continues to meander around the 1.57 – 1.58 area. The pair recently broke through the massive support area in the form of the 1.5850 area, and looks to be weak in the face of a 5 day winning streak for the stock markets. Since this pair normally follows the stock markets in general, the lack of serious pushed northward seems to show real weakness at this point. If we can break the bottom of Wednesday’s lows, we are selling this pair in an aggressive manner. Rallies are suspect, and we believe that the 1.60 area with its pair of shooting stars will keep a cap on any gains in the Pound at this point.
Written by FX Empire