The GBP/USD pair fell hard during the Tuesday session as the recent hammer from the Friday session is being tested for support. The breaking of the 1.5700 level would be a signal for us to sell this market, and we do prefer it as the risks are numerous in the trading world.
The GBP/USD pair is often a risk sensitive pair, and the pair has looked weak at best lately. The candle for the Tuesday session is long and red, but hasn’t broken the bottom of the above mentioned hammer form the Friday session. This tells us that there is significant downside pressure, but there is still work for the bears to do. We do believe that they eventually break this market down, but we need to see that sub-1.57 level close in order to join them.
Written by FX Empire