The GBP/USD pair attempted to rally during the session on Tuesday, but as you can see had formed a shooting star at the 1.62 handle as resistance be too strong for the buyers seemed too strong for the buyers. This candle of course is very bearish, but we believe that it more than likely suggests that the market is going to pull back, not necessarily fall apart. We still think the 1.60 handle is supportive, and will more than likely be the “floor” for this market going forward. Because of this, we are simply going to wait on the sidelines and by the dips as it comes. On the other hand, if we break the top of the shooting star, that would be an extraordinarily strong sign for the buyers.
Written by FX Empire