GBP/USD Forecast July 16, 2015, Technical Analysis

The GBP/USD pair initially fell during the course of the day on Wednesday, but found enough support below at the 1.56 level to turn things back around and form a nice-looking hammer. This hammer of course suggests that the market is going higher, especially considering that it comes on the heels of a very strong bullish candle. Ultimately, we believe that the market should then head to the 1.58 level, and as a result we are buyers on a break above the top of the hammer, and also on pullbacks that show signs of support on short-term charts.