The GBP/USD pair rose during the session on Monday, but gave back some of the gains. The most important thing to me though was the fact that the 1.60 handle did in fact offer support, and that was when I was waiting to see. Now that it's shown itself to be supportive, I think this market has a fair chance of going higher from here. Simply put, I think that we will more than likely consolidate in the short term, probably between the 1.60 handle on the bottom, and the 1.6150 handle on the top.
That being the case, I am looking for short-term trading opportunities, perhaps off of the hourly chart. I do not know that this market going to take off quite yet, so I think that simply have to work with the markets willing to give you. That being the case, I think 50 PIP moves or so is probably about what you can expect.
This market is obviously bullish
You really don't need this market to be any more confusing than to understand the fact that it has been going higher over time. That being the case, I feel that buying on the short term charts will be the only way to go, as selling will simply be too risky. After all, the US dollar is continuing to be hampered by the fact that the Federal Reserve has not taper off of quantitative easing, and in this pair certainly has shown that recently. I don't know that this pair is going to continue higher, but it certainly favors that move right now.
Don't forget that there is a gap somewhere near the 1.5850 handle, and that should offer quite a bit of support as well area remember, that is where the massive green candle started, so I think that a lot of buyers are probably down there protecting their positions. If we managed to break above the 1.6170 handle though, that would be one of the most bullish sign that I can imagine. At that point time, I would be adding to any long positions that I already had.
