The GBP/USD pair broke down during the session on Tuesday, only to find support just above the 1.50 level again, and bounce. The bounce formed the hammer that you see on the chart now, and as a result it looks like we might meander a little bit just above the 1.50 support area. This of course is a large, round, psychologically significant number, so it makes sense that a lot of traders will be attracted to it. With that, we believe that the bounce should offer a selling opportunity though, and that it’s only a matter of time before the British pound drops even further.
