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The GBP/USD pair fell during the session on Wednesday as it retested the 1.60 level. The encouraging thing is that the level has held, although the candle itself isn't necessarily a hammer. We are hoping to see a hammer which is one of the most clear-cut buy signals, but we still recognize the fact that a break of the highs from the Wednesday session would signify the same thing.
We still have to wait and see what happens, but we think this pair is forming a candle at the end of the day that we could use as a trade set up. Simply put, we would go in the same direction as the market does when exiting the range for the Wednesday session. If we do end up selling, we think that the market will struggle once it hits the 1.58 level.