The GBP/USD fell for most of the session on Monday, only to bounce again. The candle isn’t quite a hammer, but suggests the same thing – that there are people willing to step in and buy the Pound on dips. Because of this, we are buyers of this market on a break of the top of Friday’s candle. Once that candle gives way, we should see 1.60 vary soon. Of course, if we break the bottom of the candle for the Monday session, we could see a drop to the 1.56 level. On the whole though – we prefer to own Pounds as the currency has been so strong against most currencies.
Written by FX Empire