The GBP/USD pair fell again during the session on Tuesday, after initially trying to breakout and above the 1.58 handle. The reverse was pretty wicked, and as a result the candle looks absolutely horrible. We are closing the session just above the 1.5650 level, but what is more significant is the fact that this candle has completely engulfed the Monday ranges, in is very, very negative. It is because of this that we believe a break of the lows from the Tuesday session signals even lower prices ahead. Obviously, there’s no way we can buy this market until we clear the resistance above, something that won’t be considered accomplished until we get above the 1.59 handle.
Written by FX Empire