The GBP/USD pair rose for much of the Tuesday session to test the 1.60 level. The result was a failure at the close, and a shooting star for the candle. This is the biggest resistance area on the chart currently, and we expected some kind of reaction because of it. The candle is a perfectly placed one, but the latest move in this pair suggests that this could possibly just be a return to the previous consolidation as the pair continues to move sideways. As a result, we are sellers on the break of the lows from Tuesday. A break above this candle would be massively bullish at this point and have us long on the daily close above 1.60 as it would signal continued bullish momentum.
Written by FX Empire