The GBP/USD pair had a bullish session on Thursday, but for the second day in a row failed to hang on to gains above the 1.57 level. This is two shooting stars in a row, and this suggests to us that it is really struggling to get any higher.
We see the 1.57 level as the beginning of resistance all the way up to 1.58, and need to see this level give way in order for us to get bullish of this pair. With the two shooting stars in a row, and this suggests to us that we are going to see lower prices first, but with all of the noise and the higher lows previously made in this pair we are simply not willing to sell at this point as we think there will be plenty of buyers to push prices back up.
Again, we are overall bullish on this pair, but need to see the 1.58 level overtaken by the buyers first. Until that happens, we are not interested in going long. In order to sell this pair, we would need to see the 1.55 level give way in order to do so. At that point in time, we think that being aggressive may be the way to go.
Written by FX Empire