The GBP/USD pair found itself gaining during the session as the Pound showed strength around the board. The cable pair typically will move with risk appetite, but it may be gaining simply because it is the strongest of all European currencies right now. Without a doubt is probably going to be considered one of the safest.
However, the 1.57 level above is obvious resistance and it will take some strength to get through that level. We would consider this pair broken out if we saw a daily close above the 1.58 level. Until that happens, we’re cautiously optimistic, but expect that we could see some type of bearish signal right around 1.57 or so. It is because of this that we are willing to wait and see what the reaction is to this area.
Written by FX Empire