The USD/GBP pair initially fell during the course of the day on Thursday, breaking back below the 1.52 level. However, we found enough support below to turn things back around and form a significant hammer. The hammer of course is a bullish sign, so having said that it looks as if the markets will continue to go higher, and if we break above the top of the hammer we feel that the market is going to reach towards the 1.54 level. This is a very bullish sign, but we also recognize that a break down below the bottom of the hammer is a sell signal as well. Ultimately, we think there is still more of a bearish tone to this market.
