The GBPUSD pair initially tried to rally but then turned back around to form a rather negative candle.

Ultimately, this is a market that is simply bouncing around an area that is a lot of noise. If we can break down to a fresh, new low, we would be sellers at that point in time as the GBP/USD pair should reach towards the 1.50 level.

On the other hand, if we break higher from here we think that it is probably simply going to be a selling opportunity.

A resistant candle above should be an opportunity to pick up “value” in the US dollar.

Editor’s Note: Equity investors/traders can use the Currency Shares British Pound Sterling Trust (FXB, quote) ETF to take positions in the yen without a FOREX account.  The ETF looks to track the price of the British Pound Sterling (GBPUSD), minus ETF fee. The fund seeks to reflect the price of the British Pound Sterling (GBPUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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