The GBP/USD pair fell for much of the Tuesday session, only to bounce and form a hammer by the end of the day. The hammer was formed at the 1.62 level, and as a result it looks as if the handle is now going to be supportive going forward.
The pair is very bullish, and as a result strong buy signals like this need to be taken seriously. We are buying a break above the top of the range on Tuesday, and not bothering to sell at this point in time. We suspect that this pair is going to continue to climb overall until it finds the 1.65 level.
Written by FX Empire