The GBP/USD pair had a back and forth session on Thursday to trigger a buy signal on a break of the hammer top from the previous session. However, the pair also drew back a bit to form a doji. While not completely letting up, this isn’t the greatest of signs at this point. It is now a candle that can be played as a pure doji. In other words, buy if we break the top of it, (our favorite) or close any longs if the bottom gives way. Selling isn’t something we are prepared to do at the moment as the 1.59 to 1.60 area still looks to be very supportive below.
Written by FX Empire