The GBP/USD pair shot straight up after the hammer top on Monday was broken during the Tuesday session. 1.60 level has held a support, and it does look like we’re going to continue on to our target of 1.63 before it’s all said and done.
Based upon recent comments out of the Bank of England, it appears that the monetary policy out of that central bank is appropriate and therefore won’t be changed. On the other hand, the Federal Reserve looks very likely to begin a further quantitative easing, and if that’s the case we could see a real move higher in this currency pair.
Because of this, we are buying dips on signs of support. As long as we are below the 1.57 level, we feel that this market is still bullish. As for selling, we won’t do it.
Written by FX Empire