The GBP/USD pair had a wild day on Wednesday in order to finish the day basically unchanged. The pair will be sensitive to a lot of different things at once, but the most interesting fact is that the Bank of England is looking to ease in the near future, and this would normally have this pair falling. It is possible that the market is pricing in Fed easing in the future, and as a result this pair will be very sensitive to headlines in our opinion.
The 1.57 level is a magnet for price, and it makes sense that we are stuck in this area, and as a result – we think we could see some consolidation. The candle for the Wednesday session can be used as a signal, and as a result we would be sellers on a break of the bottom, and a buyer of a break above the highs. However, it should be noted that this isn’t our favorite pair at the moment.
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Originally posted here