The GBP/USD pair had a wild session on Thursday as we were both positive and negative by the end of the day. However, the candle that formed was a shooting star with a slightly negative bias sitting just above the 1.61 handle. This looks bearish, and as a result we think that the pullback will more than likely continue. However, this is an area that has a lot of support and “noise” in it, so it won’t necessarily be the best place to start selling this pair anyway.
We think that the 1.60 handle will offer quite a bit of support, and as a result would be more than willing to start buying at that level. Below there, we see the 1.58 level as being massively supportive also, so we are not too excited about selling regardless. We still believe in the bullish attitude of this pair going forward, and as a result are looking for supportive candle at either one of those levels. With the low liquidity though, we may not get it until January.
Written by FX Empire