GBP/USD doesn't just correct FOMC sell-off, it keeps ging
|As reported here, the Fed was an easy call this meeting around and markets behaved rationally to it.
"Staying short of stocks, scalping out a long dollar position and fading gold on a cautiously optimistic Fed, taking profits before consolidating back to a neutral market outlook and position ahead of the BoJ tomorrow and US GDP Friday."
GBP/USD has however taken the opportunity to carry the correction in the offer through on the bid to reach the highs level since 22nd July business. There is some optimism coming through with a stronger economy than what most had though pre Brexit that could offer some support to the post Brexit vote.
Meanwhile, the Fed were cautiously optimistic according to the statement with the main take-away being that they view that near term risks to the economic outlook have diminished while jobs have improved and that the economy is expanding at a moderate pace. September could be the month that the Fed hike rates, if indeed that is their preference.
GBP/USD levels
With 1.3000 being the key downside support level, GBP/USD is above the 20 dma at 1.3147 although has a long way to go to meet the 28th June highs of 1.3532 of the Brexit dead cat bounce. However, a break there opens 1.3638 as the 38.2% retracement as noted by analysts at Commerzbank who suggested that GBP/USD could potentially achieve 1.4158, the 61.8% retracement of the recent sell off.
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