The GBP/USD pair initially rallied on Tuesday, but this rally had absolutely no momentum. At the end of the day, we sell this market slamming into the 1.5250 support level, breaking down towards the 1.52 handle. We have been saying it is below the 1.52 handle that we become aggressively short of this marketplace. Until then, we still haven’t technically “broken down”, and as a result we are not willing to start selling quite yet. However, if we do get below that level we think of this market could very easily target the 1.50 level. With that being the case, that is our base trade, and it should be noted that we closed doors the very bottom of the range for the session – always a bearish sign.
Written by FX Empire