The GBP/USD formed what could be considered a perfect hammer during the session on Thursday. The 1.52 level that the hammer is based upon is the very bottom of the ascending triangle that originally sent this market much higher last summer. Because of this, a bounce isn’t completely out of the realm of possibility this point time, and we would be willing to take a short-term position based upon a break of the highest from the Thursday session. We think that the 1.55 level will still offer plenty of resistance though, and that this is a short-term trade only.
Written by FX Empire