The GBP/USD had a slightly bearish session during the Thursday markets, as the “risk off” trade came back into play. However, by the end of the session we manage to regain half of our losses in order to form a hammer shaped candle for the day.
This is a continuing pattern that we see and this pair lately, simply every time he gets sold off there are people come back into the marketplace to buy it. We still see the 1.57 area as the beginning of significant resistance running all the way to 1.58 or so. We need to get above that 1.58 level on a daily close in order to go long, which is obviously the direction the market once to go.
In order to sell this market, we would need to see the 1.55 level get broken to the downside on a daily close. At this moment in time, it seems the less likely of the two scenarios as the lows in this market continue to get higher and higher.
Written by FX Empire