GBP/USD Forecast February 28, 2014, Technical Analysis

The GBP/USD pair fell during the session on Thursday, only to turn back around and form a hammer for the second day in a row. In fact, three of the last four sessions have formed hammers, and because of this we feel that the markets are ready to go higher soon, and a break above the Tuesday shooting star is more than enough to get us to start going long of this market, as it has been in a longer-term uptrend previously. We did break out above the 1.66 handle, and now that we have retested it for support, we see no reason why this market will eventually hit the 1.70 handle.