GBP/USD had a negative day on Wednesday as the Pound in general was sold off. The pair currently sits just above the 1.5550 level, a place that we have identified as potential support. Of course, we need to see what happens next but we think that this will be an inflection point of sorts for the next couple days. If we do manage to break down below and close South of the 1.5450 level, this pair would undoubtedly run to test the recent lows at the 1.5250 level. However, we feel that with the European Union and the summit going on over the next 48 hours, it is more likely that we will continue to grind sideways between here and the 1.57 level. With this being said, we are willing to buy this pair for very short term trades on short-term charts that show support right around the 1.5550 level. Beyond that, there isn’t much to do in the cable pair.
Written by FX Empire