GBP/USD held 1.5902 support and rallied huge on the Yellen / Bernanke dovishness

FXstreet.com (Barcelona) - The GBP/USD managed to hold above short-term horizontal line support at 1.5902 Wednesday – but only after trading well below that level intraday. A break above 1.6113 will solidify the bullish change in direction.

GBP/USD traders reacting to the dovish chatter coming out of Yellen and Bernanke

GBP/USD traders reacted Wednesday to the perceived change in the Fed’s stance from being “tapering-happy” to a bunch of frightened doves.

Thursday, GBP/USD traders will have more of what Yellen and Bernanke are serving to digest in addition to the normal schedule of data releases from the US (weekly jobless claims, non-farm productivity and trade balance) and Britain (Retail Sales).

Technical outlook for GBP/USD

Technicians say that GBP/USD did a tremendous job of reversing the possible break of support at 1.5902 and posting a solid up day Wednesday. Resistance for GBP/USD comes in at 1.6113 with the 10/22 close at 1.6233 backing that up.

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