The GBP/USD pair fell during the session on Wednesday, but for the third day in a row found support below. We ended up bouncing and forming a nice-looking hammer, and that of course suggests that the buyers are about to step back in. With that being the case, we feel that the market will probably test the 1.58 handle and then perhaps even as high as the 1.60 level. Nonetheless, we prefer to sell rallies once they happen, so we are not necessarily interested in buying this market even though we do think that we will rise slightly.
