GBP/USD Forecast August 2, 2012, Technical Analysis

GBP/USD fell during the session on Wednesday as the Federal Reserve failed to announce any new measures to stimulate the US economy. This of course went against what many traders out there would’ve thought, and as such the rush to cover their short US dollar bets. Needless to say, this had an effect on the cable pair as well, and we saw a solid red candle for the session because of it.

Just below current levels, there is a significant amount of support. It is because of this that we are willing to sell this market at this moment in time. We think that the 1.55 to the 1.54 level should be significantly supportive, and as a result we are more than willing to let this trade go.