The GBP/USD pair fell during the session on Thursday, but as you can see bounced a bit in order to form a hammer. However, we don’t like buying this hammer here simply because it is in between two significant support and resistance levels. In other words, we are essentially in the middle of nowhere, and as a result do not do any trading without some type of support or resistance level to back us up. Going forward though, we think that the supportive action that we have seen at the 1.55 handle could be another buying signal, or perhaps selling resistance of the 1.5750 level is possible. In the meantime, we are on the sidelines.
Written by FX Empire