The GBP/USD pair continued to climb on Tuesday as traders were pleasantly surprised by a slightly higher than expected inflation report out of the UK this week. The pair still is stuck between the 1.65 and 1.60 levels, but pressure is increasing to the upside in general, and it might only be a matter of time before the level gives way. The real fight then would be fought between 1.65 and 1.70, which is a much more formidable area to deal with. We would advise letting the Wednesday candle print before making any decisions in this pair although it looks like 1.65 would more than likely hold, it has to be noted the latest fall only went as low as 1.61, and not the bottom of the range. This can often signal a break out coming. At the close on Wednesday, we should have more clarity.
Written by FX Empire