The GBP/USD pair went back and forth during the session on Tuesday, but essentially ended up flat. The 1.58 level just below should be massively supportive, as it was the top of the ascending triangle that sent us of over the summer in the first place. Perhaps it is a combination of both that and the fact that the fall has been so strong over the last couple of weeks that we cannot punch through the bottom. Or, perhaps that support is going to end up winning the argument anyway. Because of this, we believe that there is probably more of a risk that this market bounces then breaks down. We are looking for the right supportive candle in this general vicinity order to go along of this market, and until that happens, we are simply staying on the sidelines.
Written by FX Empire