While the $GBPUSD has been bearish since tumbling from 1.63, it turned bullish when it climbed back above 1.5500 after putting in a higher low. This week opened with a 1st test of 1.5800 major support level with the high at 1.5790.
Now the market waits on the FOMC. QE3 is supposed to be revealed today. If so, cable will soar. Support at 1.5800 certainly sets the stage for a return to 1.6000. However, if the Fed decides to wait, the $GBPUSD may fall back towards 1.5500. A break below 1.55 would certainly have bears hoping for new lows below 1.5220.
Trade what you see!