GBP/USD initially poked through the 1.60 level as the US dollar sold off. However, by the end of the session we fell back down in order to form a shooting star that sits just on the 100 day exponential moving average. With this being said, this pair does look vulnerable at the moment as the “risk off” trade start to come back into play.
Alternately, if we managed to break the top of the shooting star this would be a very strong buy signal. This would lead us to start going long of this pair again and aiming for the 1.62 level. If we managed to break down below the lows from the day on Wednesday, we feel that this market could fall to the 1.57 level.
Written by FX Empire