The British pound had a very volatile session during the day as well, as we went back and forth and ultimately settled on a slightly bearish candle. However, the range was fairly wide, which means a lot of indecision. Quite frankly this has been a bit extended to the downside at this point, so while I do favor the downside and I think we could have a little bit of a herky-jerky motion over the next several sessions. I believe it’s only a matter time before we reach down towards the lows of the 1.45 level.
The one-hour chart formed a perfect hammer that we bounced off of, and now looks as if it is trying to find resistance above, I believe that somewhere between here and the 1.48 level we will get that resistive candle that we can start selling again.
