GBP/USD rebounds from lows
GBP/USD rebounded to $1.4920 after having tested the 2013 low of $1.4830 on Tuesday. Yesterday the pair closed the day at $1.4860 (recent lows).
A break below the $1.4830 support opens the way for a further slide towards the $1.4230 area (2010 lows). We remain clearly bearish for the pair as long as the $1.5000 resistance holds. Danske bank strategists recommend selling the pair at $1.4900 targeting $1.4688 with stop at $1.4990.
Later in the day all eyes will be on FOMC meeting minutes (18:00 GMT) and the Fed chairman Bernanke speech (20:00 GMT). New confirmation of the forthcoming Fed’s QE tapering will pressure the cable.
Chart. Daily GBP/USD