GBP/USD initially fell for the session on Tuesday, but found its footing later on and rose overall. The resulting candle is shaped much like a hammer, and is sitting just above the 1.55 level. The area now looks as if it could be supportive, and the pair looks destined to march north to the 1.57 – 1.58 resistance level. The pair is still in a bearish market, so we are cautious about buying, but if we were to do it – we would buy on the break of the Tuesday range to the upside, and be willing to take profit at 1.57 or so. Or better trade is to sell from that area on weakness, and that is how we wish to play this pair…..selling between 1.57 and 1.58 on signs of weakness.
Written by FX Empire