The GBP/USD pair rallied during most of the session on Thursday, but failed to close higher, and actually lost a little bit towards the end of the session. By the end of the day, we had a shooting star form just under the 1.6150 level. This is a very bullish market showing a very bearish signal. Because of this, we are a bit reluctant to continue to buy this market until we can prove some type of strength or support.
On a break of the bottom of the hammer, we could see a move down to the 1.60 level again. However, we believe underneath that there is quite a bit of support and we think this is all part of the overall “basing” of this pair to go higher. Nonetheless, we are not buyers at this point time until we get some type of supportive pullback.
Written by FX Empire