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The GBP/USD pair initially fell during the session on Thursday, but found a ton of support at the 1.61 level. By the end of the day, we had a form a green candle, and even the test of the top of the shooting star from Wednesday. This looks like a very healthy market, and as such we think that we may have just seen the pullback that many were looking for. Granted, we would've loved to have seen it fall a bit more, but you work with what you've got.
We certainly wouldn't short this pair, so we are looking for any type of have on the short-term charts as a reason to go long. The Bank of England continues to hold rates where they are while the Federal Reserve continues to add to quantitative easing. With the jobs number out of the United States coming out later today, there is a chance that we could see some serious volatility over the next few hours. We still think ultimately this pair rises and are willing to take long positions when we pulled back over the next 12 hours.