The GBP/USD pair had a wild session on Friday as we ended up lower, but after breaking the 1.6050 handle. Nonetheless, we see the 1.60 level is very supportive, mainly based upon the Wednesday candle that was a beautiful looking hammer is the road on that level.
Because of this, we are very bullish of this pair, and continue to be. In fact, we are already long of it and think that we will be aiming towards the 1.62 level in the short run. Beyond that, we think 1.63 is the next target and that we will see 1.70 over the course of 2013. As for selling, we will not even consider it until we get below the 1.58 handle.
Written by FX Empire