GBP/USD fell hard once the Fed announced a weaker than expected outlook for the economy on Wednesday. The Bank of England is expected to move towards easing, and with the Fed not bothering to step into the markets in a big way, this pair fell hard as the USD gained value. The 1.55 support level was seen in just a few short hours, and now we are going to see which way this pair wants to run. This area should be support – but if it gives way easily – this pair goes much, much lower. We would sell rallies at this point, but would also be forced to short if we can stay below 1.55 for any substantial length of time.
Written by FX Empire