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The GBP/USD pair fell through the 1.60 handle on Tuesday as support finally was beaten-down. The market is still technically bullish, but we see this as a real threat to fall to the 1.57 level before it's all said and done. With the British pound suddenly looking so week, we saw a selloff against many other currencies as well.
The candle did show a bit of a bounce towards the end of the session, but this is a minor support level, and as such should eventually give way against the sellers. Because of this, we are willing to short rallies as long as we are below 1.60 and above 1.57 or so. This is a short-term trade, nothing more, nothing less.