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The GBP/USD pair fell for much of the Thursday session as the Bank of England introduced new quantitative easing measures during the session. The pair has found the bottom of the recent consolidation range, which we see as the 1.55 level. In fact, we are a very neat and tight trading range that is clearly defined between that level, and the 1.57 area.
Because of this, we are looking to trade a breakout of the range in either direction. On a break down, we think this pair will go down to 1.5250 to retest the lows. However, if we break above the 1.57 level, once we are above 1.58 we feel that this market will have broken out, and will be heading to the 1.60 level in very short order. We are using these two parameters as a guide for this market right now, and are not trading it presently.