GBP/USD bounces off lows 30-pips; FOMC 'fairly soon' rate hike rhetoric
|Currently, GBP/USD is trading at 1.2456, down -0.13% or (16)-pips on the day, having posted a daily high at 1.2508 and low at 1.2423.
The British pound vs. American dollar partially erased losses during the NA session as FOMC minutes missed a more hawkish wording to signal a tangible 'fairly soon' rate hike in March; there is no evidence yet to expect such action in the weeks ahead.
Vague Fed speak again, this time from Fed's Powell
Historical data available for traders and investors indicates during the last 8-weeks that GBP/USD pair, also known as the Cable, had the best trading day at +3.01% (Jan.17) or 373-pips, and the worst at -1.19% (Jan.18) or 146-pips. Furthermore, 10-year yield dropped from 2.45% to 2.41% after the Fed’s document.
Technical levels to consider
In terms of technical levels, upside barriers are aligned at 1.2581 (high Feb.9), then at 1.2705 (high Feb.2) and above that at 1.2777 (high Dec.6). While supports are aligned at 1.2345 (low Feb.7), later at 1.2260 (low Jan.20) and finally below that at 1.2010 (Jan.17). On the other hand, Stochastic Oscillator (5,3,3) seems to change course to head north. Therefore, there is evidence to expect further British Pound gains in the near term.
FOMC Minutes: Policymakers thought a rate hike "might be"appropriate "fairly soon"
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