The GBP/USD pair fell during the session on Monday, after initially gapping higher. This is a pretty bearish sign, and at this point time we realize that this market could possibly pull back further. After all, we are in a larger consolidation area that extends from 1.5850 on the bottom to the 1.6250 level on the top. With that though, we recognize that the trend has been up until the last couple of months, so we think this is simply more consolidation. There are support clusters below, so we would be careful shorting at this point, but certainly see no candles that lead us to want to start buying either.
Written by FX Empire