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The GBP/USD pair fell drastically after initially gaining during the Thursday session. In fact, the pair had a raced roughly 75 pips ahead of the ECB meeting. Once the ECB and the Bank of England both got done with their meetings however, the markets have proven to be very disappointed and the pair got sold off in dramatic fashion.
The candle looks like a big huge massive shooting star, and is sitting just above the 1.55 support level. This suggests to us that there is a possibility of serious pressure to the downside at this point in time. After the nonfarm payroll of that, there could be an attempt to break down below the 1.55 handle, and down to the 1.54 level.
If we can manage to get below the 1.54 level in this pair, we think that a run to 1.5250 is very likely. Anything below that, in this pair melts down. In order to go long though, we need to see a break above the 1.58 level which of course is something that we don't expect to see anytime soon.