The GBP/USD pair had a strong showing during the Wednesday session, bouncing off of the 1.50 yet again. However, we did not see a breakout, rather we simply saw a market that bounce back to the top of the most recent consolidation area. We still firmly believe that this market will continue to fall, but we need to see the daily close below the 1.5 level in order to start risking any type of money shorting this market. The alternate scenario for selling of course is that we see a resistive candle right around the 1.52 area, as it looks so resistive at the moment. As far as buying is concerned, we have to close well above the 1.5250 handle in order to do so.
Written by FX Empire