The GBP/USD pair fell during the start of the Friday session, but bounced later in order to form a slightly positive candle. It appears that the 1.58 level will offer support, and on the longer-term charts we have formed a hammer on the weekly time frame. This suggests that we will see a bounce from this area. It’s hard to tell really what happened, as it is a “risk sensitive pair.”
With all of the headline risks out there, we would urge caution if you do start buying this pair, which we will be doing above the 1.59 level. As for selling, a move below the 1.58 level would be enough to have a start selling and aiming for a move down to 1.57 or so.
Written by FX Empire