The GBP/USD pair went back and forth wildly on Wednesday just as it had on both Monday and Tuesday. Looking at this, we suspect that the 1.58 level is trying to hold a support, after a significant selloff.
The British announced better-than-expected employment numbers during the Wednesday session, and it was announced that the bank of England only had one voter suggesting more quantitative easing. Because of this, we could see a bounce from this area which of course is massive support in the longer term charts based upon the ascending triangle that had broken out at this point.
With that being the case, we love buying above the 1.59 handle. As far as selling is concerned, we would have to close significantly below the 1.58 level, and also would be a little bit leery as there is so much noise below this area.
Written by FX Empire