The GBP/USD pair fell during the first part of the trading session on Tuesday, only to bounce back to form yet another hammer. This is the second one in a row, and after the massive bullish action that we saw last Friday, it does indeed look like there is upward pressure on the British pound.
With this being said, it does appear that there is massive resistance just above going from 1.57 to the 1.58 level. Because of this, we are not ready to buy at this moment in time, but would not hesitate to go along of this pair above the 1.58 mark if we manage to close on the daily chart above that particular level. As for selling, if we manage to break in both of the wicks from the previous two sessions, we would go ahead and make an attempt at shorting this pair
Written by FX Empire