The GBP/USD pair fell after rising to the 1.55 level on Friday. The area was recently support, so a retest of it as resistance would be expected by the markets, and it did in fact fail to break above that area. This is a very bearish sign as it shows that the market cannot break above, and there isn’t significant buying pressure to continue anything of substance for any great length of time. Because of this, we are still selling the cable, and will continue to do so anytime it rallies. We believe that 1.55 could be an excellent entry as we consolidate just under it. A fresh low also gets us selling again.
Written by FX Empire