GBP/USD fell precipitously on Monday, just as expected. The Bank of England should be talking about more quantitative easing later this week, and as a result the cable pair has fallen. Add to that the fact that the UK is so heavily exposed to the EU, and the pair will be weak over time. The pair is just now hitting the top of support, but the real support lies in the 1.55 area, and we think this is where this pair goes. The 1.53 is below and could be supportive as well. Buying this pair isn’t possible yet, as we haven’t seen any signs of larger support yet.
Written by FX Empire