The British pound trying to gain on the US dollar during the session on Wednesday, but as you can see by the daily chart we formed a second shooting star in a row. It does look like 1.61 will cause problems for the buyers, and a pullback is more than likely. This being said though, we see quite a bit of support at 1.60 and definitely a ton of it at the 1.58 handle. Because of this, we look at any selloff in this currency pair as a simple buying opportunity.
With the fiscal talks going on in Washington DC, we could have a negative headlines affect this pair and send it lower. However, on the whole we think this pair is still quite healthy, and are willing to buy dips as they show signs of support. Selling is not an option until we get below the 1.58 level.
Written by FX Empire