GBP/USD Forecast February 6, 2014, Technical Analysis

For the second session in a row, the GBP/USD pair formed a hammer on Wednesday. This hammer sits right at the 1.63 handle, and as a result it looks like this area is indeed going to be very supportive. With the area looking so supportive, we believe that a break of the highs from both of the sessions would be more than strong enough to start buying this market as it should start heading towards the 1.65 handle. We are aware the fact that the nonfarm payroll number comes out in a couple of sessions, but it appears to us that the market is already showing which direction it wants to go in.