The GBP/USD pair fell significantly during the course of the session on Thursday, but found enough support below to turn things back around and form a hammer. The hammer of course is a very bullish sign, and as a result I believe that this market will continue to go higher. I look at pullbacks as potential buying opportunities, as the hammer of course suggests. Also, you have to keep in mind that there is a lot of support in the previous consolidation area that we have just recently tried to break out, but ultimately there are several other reasons why think this pair is going to continue to go higher.
The 100 day exponential moving average is below and marked on the chart, as well as the 1.55 handle. The 1.55 handle is of course a large, round, psychologically significant number, and of course is one that will attract a lot of attention due to that. Beyond that, we have an uptrend line that of course should pushes market higher as well. In other words, there are simply far too many reasons the think that support will come back into play, and should push this market well above current levels.
The 1.58 level
The 1.58 level above is a target as far as I can see, and as a result I believe that we will reach towards there. If the keep in mind though that the time of year is in exactly conducive to a massive breakout, and you will more than likely have to hang onto a bit of volatility. Nonetheless, I do believe that the buyers are going to be in control, and they will continue to pushes market higher. Once we get above the 1.58 level, we will then reach towards the 1.60 level given enough time. I have no interest whatsoever in selling, as it should just simply represent value in the British pound overall.
