The GBP/USD pair fell hard during most of the session on Thursday, but as you can see bounced enough to form a hammer right at the 1.55 handle by the end of the day. This is significant, as it shows that the buyers are trying to step into the market at roughly 1.55, and as a result we could see a bounce from here. After all, this is roughly at the perfect spot to see it happen. That being the case, we are more than willing to buy on a break of the candle to the upside, as we think the market will then trying to return to its course heading of 1.60 by the end of the move. On the other hand, if we break the bottom of this hammer, that is a very, very bearish sign.
Written by FX Empire