The GBP/USD pair continued to grind sideways on Tuesday as the pair simply has no real catalyst to rise, but the Dollar is being speculated against as the ideas of another round of quantitative easing are in the market. The fact that the pair can’t bounce from this obvious support area of 1.53, even after forming a couple of nice hammers suggests that the pair may be in real trouble. It is because of this that we are waiting to see a nice bounce to sell from. Weak candles in the area of 1.55 and most certainly 1.58 will be prime sell signals. A break and daily close below the lows from Friday has us aggressively selling.
Written by FX Empire