GBP/USD rose during the session on Wednesday in an attempt to break above the shooting star from the Tuesday session. Considering that there was little news to move the markets overall, it should be said that this makes this movie more interesting. The head of the Bank of England was stated as saying that further monetary stimulus probably wasn’t going to be necessary, and this of course gave a boost to the Pound in general.
Looking at the charts, we can see an obvious resistance point at the 1.57 level that extends all the way to the 1.58 handle. If we can get above this area, we think this pair could move to 1.60 and relatively short order. It should be noted that even though the market hasn’t been able to break above this resistance area, the lows are getting higher over time. This just looks like a market that is trying to break out. With this being said, we are interested in buying above the 1.58 handle if we can get a daily close in that area. As for selling, we need to see the 1.55 level cleared to the downside on a daily close in order to even consider it.
Written by FX Empire