The GBP/USD pair fell on Wednesday to reach for the 1.59 level. However, we didn’t close below it, and that is the sell signal that we have waited for. Until that happens, we are very interested in shorting this pair, but are flat. The 200 day exponential moving average is just below, and the pair actually touched it for a moment during the day. A break below that has us selling, but we are aware of the fact that the move could be very choppy and difficult. Buying isn’t a thought until the markets calm down overall. Until risk appetite is back, selling the Dollar is a losing proposition. The Bank of England lowering growth forecast during the session didn’t exact help either.
Written by FX Empire