Forex Trading Strategy: The Pound Tries to Move Higher

GBP/USD (1.67338)

The GBP/USD found a bottom, formed a hammer and then moved higher. This comes after a Doji formed near 1.6661/.6660. This indicates a short term end to the recent downtrend as sellers might hesitate a bit here.

There is a risk for more losses, as price actions over the last several weeks warrants this. A fall below 1.6661 opens the gates for a test on 1.6555/1.6550. We have seen more volume in trading so we could move past 1.6740 then test 1.6750.