GBP/USD rose on Tuesday as the markets bought into the “risk on” scenario. The pair rose all the way to the 1.57 level where is promptly turned around, suggesting it was a low volume move. The 1.57 level is the first resistance level it saw, and it didn’t make it above that level, showing a lack of conviction. However, it isn’t impossible to think that the pair could rise above that level, but the low volume can work against the pair as well. With this in mind we prefer to sell as it is in line with the overall market moves. The selling of rallies and a failure at 1.57 could be a decent short-term move. Otherwise, we would be on the sidelines.
Written by FX Empire