The GBP/USD pair initially tried to rally during the Tuesday session, but was beat back at the 1.59 level. The resulting action caused a shooting star to form for the day, and it now looks like we’re going to grind lower.
We see the top of the shooting star as significantly resistant, and as such are willing to buy this market if we get above it. However, we see the 1.60 level as an area that will more than likely be strong resistance so this would only be a short-term buying opportunity. As for selling, we see a break of the lows from the Tuesday session as a signal that we’re going to reach for the 1.57 level.
Written by FX Empire