GBP/USD fell on this past week, but managed to find support in the form of 1.60 at the close of business. The pair looks like it has had a pullback, and that it is ready to try and bounce from here. The breaking of the top of the weekly candle would confirm it as a hammer, and would send in new longs. A break of the bottom signifies a “hanging man”, and this would be very bearish indeed. Because of this, we have a very binary trade set up: If it breaks higher – buy. If it breaks lower – sell. Just make sure it exits the range from the week first.
