The GBP/USD pair fell on Wednesday as traders sold off the Pound against the Greenback. The dollar had been believed for some time to be about to be weakened by the Fed on Friday as it introduced QE3. The fact that the market is starting to see Durable Goods orders and money supply in the US rise, it shows that the Fed is less likely to ease, and therefore the relatively weak Pound will suffer against it. Of course, this can all change on Friday, but the 1.65 level has held quite firmly as of late, and it appears we are heading lower. A break of the lows on Wednesday has us selling again.
Written by FX Empire