The GBP/USD pair had a strong showing on Tuesday as we crashed into the 1.61 handle. The market looks ready to take on the 1.61 region of resistance that extends all the way to the 1.62 level currently, and as such we are more bullish of this pair today than we were yesterday.
The FMOC announcement later today will be a major driver in which direction this pair goes, and if the Americans continue to ease their monetary policy, this pair could finally break out to the upside. Alternately, if they do not do much in the way of easing, this pair could pull back to the 1.60 handle in relatively short order.
Written by FX Empire