The GBP/USD pair rose on Monday as the Pound gained for much of the session. However, by the end of the daily session, the pair had given up most of its gains. The 1.6050 level had been massively resistant over the past, and now should be supportive if the level is to be believed. The candle for the Monday session looks very much like a shooting star and we think this shows a real chance of a breakdown. However, with the candle being just over the support level we think that this pair could be very choppy and therefore one of our least favorites to trade. In fact, with the Euro being so weak and the Pound being so stubborn, this pair shows that we need to focus on EUR/GBP more than this pair.
Written by FX Empire