The GBP/USD pair fell hard on Friday as the risk appetite of the global markets continues to fall. The 1.6050 level has been supportive lately, and this is exactly where the market sits at the moment. The fact that the pair close right at the bottom of the daily range suggests that there is a serious amount of downward pressure in this market at the moment.
The breaking below of the 1.59 level would signal a selling opportunity to us, but the area between here and there is fraught with various minor support levels and as such we aren’t ready to sell at this point. The market overall is bullish, so buying is easier at this point, but we need to see a supportive candle. Until one of these two scenarios comes about, we are on the sidelines.
Written by FX Empire