The GBP/USD pair broke higher during the course of the session on Wednesday, but found the 1.50 level to be far too resistive and turned back around to form a shooting star. If we can break down below the 1.48 level, we feel that this market should go much lower, probably heading down to the next psychologically significant number of 1.45 as markets tend to be attracted to those round numbers. If we do break above the 1.50 level, we feel that there is a significant amount of resistance all the way to the 1.52 level, so we essentially have a “sell only” type of situation.
