GBP/USD shot straight up on Wednesday as traders reacted to the major central banks of the world working on lower Dollar swap costs. Essentially, this can help alleviate the potential of European banks being frozen out of the credit market. (In theory.) The pair shot straight to the 1.58 handle, which is also the 61.8% retracement form the recent fall. It did pair gains though, and looks like the initial reaction was a little overdone. We still like shorting this pair, but not at this point – we want to see a continuation of the weakness we saw in the US afternoon session.