GBP/USD Forecast March 8, 2016, Technical Analysis

The GBP/USD pair initially fell during the day on Monday, but turned back around to form a very positive candle. The hammer suggests that we are going to go higher, but the biggest problem that we have us going long of this market is not only is in a bit overextended at this point in time, but we do have quite a bit of noise just above. Because of this, we are going to simply sit on the sidelines in this particular market. While we do recognize the potential for a move higher, the reality is that it is going to be a very hard trade to hold onto.