GBP/USD rose during the session on Tuesday as the bullish traders attempted to push the pair above the 1.57 level. The area has held as resistance yet again, but we should recognize the fact that the lows are still getting higher and higher over time. This suggests to us that there is pressure building to the upside, and it is only a matter time before this market breaks out.
However, the fact that the market gave back so much of the gains during the session does show how resistive this area really is. This is what keeps this out of the market into we get above the 1.58 level which we see as the top of the resistance zone. As for selling, we simply won’t do it until we break well below the 1.55 level which would show a momentum swing back to the downside. In the meantime, this looks like a range bound and choppy market which is what we do not prefer to trade.
Written by FX Empire