The GBP/USD pair initially tried to fall during the session on Thursday, but found enough support around the 1.6350 level to bounce and form a hammer. This hammer suggest that the market would go higher, but we also recognize the fact that the candle from the previous session on Wednesday showed a significant amount of selling pressure to the upside. Ultimately, we believe that the British pound will continue to the 1.65 handle however, as it is a bit of an anomaly against the US dollar. Above the 1.65 level the 1.70 level will be targeted sometime in early spring as best I can tell, and I look forward to buying pullbacks going forward as the markets should continue to favor the United Kingdom.
Written by FX Empire