The GBP/USD pair fell during the balance of the session on Friday, but as you can see bounced enough to form a hammer. Interestingly enough, not only is the daily candle a hammer, but so is the weekly one! Because of this, we feel that there is a lot of buying pressure underneath, and that a break of the top of the hammer, which we extensively equate to a break of the 1.5250 level and would wait for such, signals of the market is going into the next consolidation area and heading towards the 1.55 handle. Based upon the price action that we’ve seen down at the 1.50 level lately, we are now thinking about buying pullbacks if we get them.
Written by FX Empire