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The GBP/USD pair fell during the session on Wednesday, only to turn around and bounce in order to form a hammer. It looks like the 1.62 level wants to be support now, and with the recent rise in this pair it would be surprising to see yet another leg up.
Honestly, this pair has been overbought recently, but it seems like it has enough energy to keep going. We certainly won't sell this pair, and would actually prefer a dip down to the 1.60 level in order to buy on a major support level. However, we may not get are opportunity as the British pound look so strong against the US dollar right now.
We think that a break above 1.63 would be a massive breakout at that point, and buying could be the only thing that could be done after that happens. Nonetheless, we still want to see that pullback as we are so extended. Quite frankly, I dropped down to the 1.60 level really is still very reasonable as this move started all the way down at 1.55 or so. Going forward, we are buying dips that show any signs of support.