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The GBP/USD pair fell during the entirety of the Monday session, but did manage to gain back half of its losses. The result was a fairly strong looking hammer formed around the 1.56 level, and this it goes along nicely with our previous thesis that this pair is only not its upward pressure to attack the 1.57 - 1.58 resistance level.
Because of the fact that the lows keep getting higher, we are only buying cable at this moment in time. We do recognize however that it is a long way from breaking out, so truth be known we are more than willing to sit on the sidelines of this currency pair. A daily close above the 1.58 level however, has us buying this market hand over fist. As for selling, we would need to see a break below the 1.55 level on a decisive daily close.