The GBP/USD pair initially fell during the day on Wednesday, but turned around to form a hammer. The hammer of course is a bullish sign, and I believe that the hammer gives us an opportunity to buy this market on a break above the 1.25 level. This is a market that seems to reach towards the 1.27 level repeatedly, and I think that’s what’s about to happen here. I have no interest in shorting, I believe that the British pound is trying to form a longer-term bottom. There is a high likelihood that we will eventually break above the 1.27 handle as well.
Written by FX Empire