The GBP/USD pair initially fell during the day on Tuesday but found enough support just above the 1.52 level to turn things back around and form a hammer. The hammer suggests that we are going to try to reach the 1.55 level, and as a result we are buyers of pullbacks and show signs of support. With this, we believe that the market will continue to consolidate between the 1.52 level on the bottom, and the 1.55 level on the top. Ultimately, we think that the British pound will continue to rise, but it’s going to be a bit of a fight.
