GBP/USD fell during the session after initially trying to gain on Monday, and managed to close below the 1.59 level. This level was very significant to us as it was the bottom of the “zone” that was defined as 1.60 or so. Now that we have close below it and have formed something that kind of looks like a shooting star, a move below the lows from the Monday session would have us selling and aiming for the 1.57 level
Alternately, if we break the top of the candle we should see a rapid return to the 1.60 level. We think that the barrier at 1.60 will cause issues, and as such do not expect this pair to rise much above that at least in the short-term.
Written by FX Empire