The GBP/USD pair attempted to rally during the Tuesday session, but was turned around and form a shooting star sitting directly above the 1.55 support level. This looks rather bearish at this point in time, and this suggests that perhaps we will continue to fall.
We’re getting close to the bottom of the previous consolidation area, so a daily close below the 1.55 level of course is rather interesting and gives us thinking that this pair will fall to the 1.5250 level. Being a risk sensitive currency pair, it would make sense as the headlines are certainly out there that cause problems.
Because of all of this, we are not buying this pair unless we break the top of the shooting star for the day at the 1.5550 level, which of course would be bullish. We think a move like that would be simply an attempt to get back to the 1.57 level, and that would be where we would take are profits. However, if we get below the lows on the Tuesday session, we are willing to sell this pair at that point in time.
Written by FX Empire