The GBP/USD pair fell for most of the session on Wednesday in order to retest the 1.6050 level for support. In the end, it go it as the pair bounced hard from that point. The resulting candle was a hammer, and this looks like a very good sign indeed for the Pound.
The pair looks as if it has retested the latest breakout to satisfaction during the session, and the hammer will serve as a starting point for the bulls. On a break of the top of the daily range for Wednesday, we will be long of this pair. Shorting isn’t a thought until we are sub-1.59 on a daily close.
Written by FX Empire