The GBP/USD pair initially fell during the day on Wednesday, but then shot straight through the air as we broke significantly above the 1.54 level. There is a bit of resistance at the 1.55 handle though, so we are not quite ready to start buying after the significant move. There just simply isn’t enough room, and unless you got involved in this move early in the day, it’s almost impossible to risk money at this point in time. A move above the 1.55 level would signal the next leg higher, and at that point in time we would buy. Pullbacks could be buying opportunities as well, but with this type of volatility it’s best to let the market settle down first.
