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The GBP/USD pair initially rose during the session on Thursday, but failed at the 1.62 handle as the sellers stepped in. More concerning is the fact that we closed the very bottom of the range, and the candle engulfed the previous session by quite a measure.
With this being said, the 1.60 level is still very crucial for this market, and as long as we're all that we are not willing to even consider shorting this pair. Even if we break the 1.60 handle, it's very likely the 1.58 will offer support, and then buyers will step in at that point. It isn't until we get below the 1.57 handle that we become very comfortable selling as it would be a long-term momentum change. Until that happens, we are looking to buy supportive candles but with the Thursday session happening, it may be a while before we see them.