GBP/USD rose during the session on Thursday as traders had a bit of a relief rally after a particularly bearish session on Wednesday. However, the gains were minimal compared to the losses, and the gains were even given up towards the end of the day to form shooting star at the bottom of the recent consolidation area. This is a sign that it couldn’t rally, and 1.60 seems to be giving the pair fits at this point. Because of this, our outlook on this pair is for weakness. The breaking below the Thursday lows would signal another round of selling in our opinion. We won’t buy at this point as there are far too many headline risks out there to buy a risk-correlated pair like cable at the moment.
