GBP/USD had a wide range during the Tuesday session, and ended up printing a doji for the day. The candle is right at the 1.60 level, and the 61.8% Fibonacci retrace as well. The area looks like a great spot to run into trouble, and the candle sets up a binary trade: Buying on a break of the top of the candle or selling on a break of the bottom of the candle. With the trend being down overall, we prefer a selling situation and think the reaction of the markets to the European meeting later today will be the driver of this pair going forward.
Written by FX Empire