The GBP/USD fell during the session on Tuesday as the British pound got pummeled. In fact, we broke the bottom of the hammer from the Monday session that it of course signal selling positions. However, at the end of the session we manage to bounce and not to form yet another hammer. This only reinforces the idea of breaking below this current hammer as a bearish signal if you happen to be out of the market right now.
The market does look very vulnerable this point and we think that the consolidation between 1.58 and 1.55 should continue. Because of this, we are selling weak signs above current levels than we are currently seen. We believe that consolidation will remain the team for this currently pair.
Written by FX Empire