The GBP/USD pair fell again on Friday, but managed a reversal in the middle of the session after the Federal Reserve Chairman said in his speech that the US didn’t need more QE, and this started a surge of buying for risk-related assets such as the Pound. The pair formed a hammer on the daily chart, and as a result looks like a bounce is coming. The breaking of the highs on Friday is a buying signal – but it should be noted that the 1.65 level up ahead has been very resistive. A breaking of the Friday low is a very bearish sign and is able to be shorted.
Written by FX Empire