The GBP/USD pair tried to break through the 1.63 handle on Wednesday, but with the beat back by the sellers. The decisive turnaround was quite impressive, and formed a nasty looking shooting star. Because of this, we would not be long of this pair at the moment, and would simply wait for a pullback in order to start buying again.
We think the 1.61 handle would be an ideal place to see supportive action and we would not hesitate to go long at that point. However, there is always the possibility that we break the top of the shooting star from the range on Wednesday, and this of course is a massively bullish sign as well. We are not interested in selling as we think any trade south from here is going to be short term at best.
Written by FX Empire