The GBP/USD pair fell extremely hard during the session on Friday in order to test the 1.5850 level. However, we see significant support below at the 1.58 handle, and think that perhaps the downside is somewhat limited at this point. Because of this, we certainly cannot sell now because it would be “chasing the trade”, but buying at this point without some type of supportive price action would be reckless. That being said, we are going to see how the spare reacts to the 1.58 handle before you make a decision on where to go next.
Written by FX Empire