The GBP/USD pair fell during the session on Monday as the “risk off” trade came back into play as the Cypriot bailout rattled the markets. The deal included wiping out equity holders of the banks in that country, and as a result the markets lost a lot of the risk appetite that had first returned at the announcement. However, there is a lot of noise below the current area, and as a result there is a real chance for support in this area. We would expect a bounce from this area, but in the end expect the 1.55 level to be a great selling area.
Written by FX Empire