The GBP/USD pair gained on Wednesday as the 200 day EMA continues to offer support for the pair. The 1.58 level is also supportive, so the combination always assured that the market was going to rise overall. The 1.60 level above is massively resistive though, and we cannot help but feel that the market is trying to “measure” the strength of the bears at the moment.
A break above the highs from last week are need for us to be comfortable going long at this point, as the market is so tight. The breaking of the 1.58 level on a daily close would be doubly bearish for us as it is not only support, but a break below the 200 day EMA as well. In the meantime, we are cautious about trading this pair.
Written by FX Empire