The British pound initially tried to rally during the day on Tuesday, but found the 50% Fibonacci retracement level at the 1.27 level be far too resistive to continue going higher. By doing so, we rolled back over and ended up forming a bit of a shooting star. I think that we will probably reach down towards the uptrend line now, as we are starting to make a “lower high”, assuming that we can break above the top of the shooting star today. Even if we did, I think that the 1.2850 level above is the “ceiling” in this market.
Written by FX Empire