The market pulled back during the session on Monday, but as you can see the GBP/USD pair found enough support at the 1.50 handle in order to bounce and form a hammer. The hammer as you can see shows that the 1.50 level is starting to act as a “buy zone”, and as a result we could see a move higher. However, we do recognize that the 1.5250 level will be resistant, so we think any move higher will be a short-term one at best. We still believe in the downtrend of this currency pair, so if you are a bit more conservative, you can wait until higher levels and resistive candles to start selling.
Written by FX Empire