The GBP/USD market went back and forth during the session on Thursday, focusing mainly on the 1.5250 level as its center of gravity. Looking at this chart, you can see that the hammer that had formed on Wednesday certainly suggested that we would have support, and the fact that we did go as high as the 1.5325 area suggests that many in the marketplace would have thought this was about to happen as well. However, it cannot be overlooked and a lot of the gains were given back, and quite frankly the candle for the day does not look overly bullish, even if the one from Wednesday looks very supportive. That being the case, we think that selling this pair will more than likely be the next move, but we need to see the 1.52 level close below on the daily chart in order to do so.
Written by FX Empire