Video Analysis – GBP/USD February 11, 2015

Looking at the GBP/USD pair, you can see that we tried to fall little bit during the session on Tuesday, but we continue to hang about the 1.52 level. This is an area that was previously resistance, and it now appears to be support. As we have pullback to find support, that is classic technical analysis.

If we can break above the top of a hammer during the session on Tuesday, we would more than likely head to the 1.55 level. At that area though, we think that the market will find plenty of sellers to push the market back down. The meantime, I anticipate that the market will bounce around the 1.52 level on the bottom, and the 1.55 level on the top.

However, if we do break down below the bottom of the two hammers, although it’s a very negative sign, I have no interest in selling this pair because I think there’s so much support at the 1.50 level. In fact, this is one of those rare incidences in the Forex markets at the moment that I think you can actually go against the dollar.