The GBP/USD pair fell hard during the session on Wednesday as the World Bank downgraded its outlook for the British economy. However, the 1.60 handle offered support as we would expect, and as a result not much has changed so far. The fact that we pierced that level and when below for short period of time during the session is of course bearish, but the fact that we cannot close significantly below it is something that would give us cause for concern if we were in fact a seller. We need to see a significant bounce, and order to start buying; we still believe the 1.60 is significant enough to keep prices lifted a bit. Ultimately, we see a massive amount of support at the 1.58 level, so selling really isn’t something wrench in anyways.
Written by FX Empire