GBP/USD rose on Tuesday as the “risk on” trade came back into vogue. The pair rose above the 1.56 level, and looks like it wants to build on those gains as the shooting star from Monday was violated. The move is strong and impressive, but one must keep in mind the trend is very bearish at this point. In fact, the USD probably shouldn’t be shorted at all in the markets as the headline risks are so great presently. One can take a short-term trade in this pair on the long side, but prudent traders will simply wait until we get signs of weakness in this pair in order to sell.
Written by FX Empire