The GBPUSD pair fell during the course of the day on Tuesday, but found enough support near the 1.7050 level to turn things back around and form a little bit of a hammer.

This hammer tells us that the market is starting to attract buyers, and as a result we believe that the barrier between here and the 1.70 handle should continue to offer plenty of support, and as a result we feel that this market will bounce and head to the 1.72 level.

Above there, the market have to the 1.75 handle, which is are longer-term target.

Editor’s Note: Equity investors/traders can use the Currency Shares British Pound Sterling Trust (FXB, quote) ETF to take positions in the yen without a FOREX account.  The ETF looks to track the price of the British Pound Sterling (GBPUSD), minus ETF fee. The fund seeks to reflect the price of the British Pound Sterling (GBPUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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