The GBP/USD pair fell during the session on Thursday as the market would have only been liquid for two of the three sessions. The Americans had Thanksgiving holiday in mind, so of course the liquidity during that time period would have been very low. However, we still stand Meyer analysis of this pair that will continue to grind higher, and we like the idea that the 200 day simple moving average is just below as well as the 1.58 support level.
The shape of the candle is somewhat hammer like, so we think that support could come back into this market over the next 24 to 48 hours. Looking at this market, we think the 1.6 level will offer resistance, but it should be minor in the big scheme of things as we aim for the 1.63 handle. This level will be hit eventually, but it could be a couple of months as we grind higher, not a straight up.
Written by FX Empire