The GBP/USD pair fell during most of the session on Tuesday, drifting towards the 1.30 level. That support barrier got broken, and because of this it’s likely that we will continue to go much lower. I think that if the market bounces from here, it’s not until we break above the 1.3050 level that I would be a buyer. I suspect that any type of exhaustive rally is probably going to be a selling opportunity, and I think that we will continue to go to the 1.2850 level underneath, where I would see even more support. A breakdown below there would become very bearish, and that this market would come unwound.
I continue to sell rallies on short-term charts, but I’m not looking for major moves. I think this is going to be more or less a scalpers market, as we continue to see bearish pressure. However, if we do break above the 1.3050 level, the market should then go to the 1.3150 level above. Move above there sends us market much higher. However, I think that we need to do a little bit of falling first, as the US dollar has been oversold for quite some time. That being said, there are a lot of concerns when it comes to the British economy as they are leaving the European Union, and most people have no idea what that’s going to mean. Uncertainty continues to cause issues, and I think that this market will continue to be very unstable because of this.
Written by FX Empire