The GBP/USD pair initially tried to rally during the day on Thursday but turned around to form a negative candle again. The US dollar continues to be very strong against most currencies, and I think that the British pound will drop to fill the gap near the 1.2050 level underneath. Ultimately, I believe that the 1.20 level underneath continues to be supportive as well, and thus I think that’s where we will eventually try to reach. Down in that area, we could get an opportunity to serve buying, but must wait to see whether that shows itself.
Written by FX Empire