The GBP/USD pair fell for most of the session on Monday, only to bounce at the very end of trading. The 1.55 level has offered support, and this should really be that surprising as it had been the bottom of the recent consolidation. As usual, it was the Americans that chose the sell the Dollar, and as such we still most of the gains in the later hours.
Looking forward, we think that the pair will more than likely try to bounce back to the 1.57 level as the summer doldrums continue. There simply aren’t enough big players in the markets at this moment in time in order to drive some type of longer-term trend. This of course is barring some kind of unforeseen black Swan event, which of course could come out of Europe.
We are interested in buying shorter-term candlesticks that looks supportive near the 1.55 level for the short term trade. As for selling, we will do that will once we get to the 1.57 level and see some type of weakness.
Written by FX Empire