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The GBP/USD pair had an extraordinary day on Tuesday as it finally broke above the recent resistance level. However, the market is resistive all the way to the 1.58 handle, and we did not manage to close above that level. This move during the Tuesday session does suggest that we are getting ready to do so, but in till we get a clearance above this minor cluster overhead; it is difficult to go long at this point.
We certainly wouldn't sell this market however, and as long as the Federal Reserve minutes come out later today and suggest some type of easing is possible, this pair more than likely will clear this hurdle during the session. If it does not, we see the 1.57 level as support now. On a daily close above this 1.58 handle we are more than willing to go long.