The GBP/USD pair tried to rally during the course of the day on Wednesday, but failed at the 1.63 region. By doing so, we ended up forming a shooting star, and that of course is a fairly negative sign. We believe that this market will continue to go lower, probably heading to the 1.60 handle given enough time. Although having said that, we do believe that this market will eventually bounce. The British pound is probably the outlier when it comes to trading against the US dollar, so we believe that eventually the buyers will step in. They do not look like they are doing so at the moment though.
