The GBP/USD pair initially fell during the day here on Tuesday, but found enough support below the 1.50 level to turn things back around and form a relatively positive looking hammer. The question now is whether or not we can bounce from here. At this point in time it’s very unlikely that the markets are ready go higher for any significant move, so we look at rallies as potential selling opportunities. We also look at a break down below the bottom of the candle for the day on Tuesday as a selling opportunity. The dollar remained broadly supported after Friday’s strong U.S. employment data fuelled further expectations that the Federal Reserve will hike interest rates for the first time since 2006 at its upcoming meeting on December 15-16. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.35% at 98.07.
RECOMMENDATION :
BUY GBP/USD ABOVE 1.5100 TARGET 1.5120 1.5150 SL 1.5070
SELL GBP/USD BELOW 1.5060 TARGET 1.5040 1.5010 SL 1.5090
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