The GBP/USD pair fell for most of the session to find the 200 day EMA just above 1.58 on Tuesday, only to bounce again to form a hammer. The market has been grinding higher lately, although grind is the operative word.
The pair will continue to struggle at the 1.60 level, and a break and close above the 1.6050 level would be needed to be seen in order to buy for a longer-term position.
The selling of this pair cannot be done until we get below the 1.58 level on a daily close. The ability to break below that area on a daily close would be very bearish, and we would have to sell aggressively at that point. In the meantime, the 1.58 and 1.60 levels should contain this market in a range bound setting.
Written by FX Empire