GBP/USD rose on Monday, only to fall back down and formed a shooting star. The 1.59 level looks resistive at this point, and it is cause for the buyers to be somewhat concerned in the short-term. However, the 200 day EMA sits just below present action and we have already seen that the 1.58 level is looking very supportive indeed.
If we get above the top of the shooting star, this would suggest that we will continue higher and this is essentially what are base case is in this market. However, until that happens we cannot do anything with this pair, and will simply sit still. Alternately, if we managed to break down below the 1.58 level on a daily close, this could be a bearish in a sign to get us to start selling again.
Written by FX Empire