
The GBP/USD pair initially fell on Friday, but found enough support to form a hammer right at the 1.2250 level. This is an area that’s been minor support and resistance in the past, so it’s not a big surprise that we might see a bit of a bounce. If we break down below the bottom of the hammer however, that would be a very negative sign. I am going to trade this market in whichever direction we break. I recognize the 1.24 level above as resistance, and the 1.20 level below as support.