GBP/USD fails to hold above 1.28, eyes on FOMC minutes

The GBP/USD pair spent the first half of the day in a relatively tight range on Wednesday before gaining traction in the early NA session as the greenback came under heavy selling pressure. Although the pair broke above the 1.28 handle, it failed to preserve its momentum as the latest Brexit headlines from the UK made it difficult for the British pound to stay resilient against its peers. As markets are getting ready for the FOMC to release its meeting minutes, the pair is trading near 1.2777, adding 0.45% on a daily basis.

While speaking at an event in Tennessee, Atlanta Fed President Raphael Bostic said he was open to a rate if the downside risks on the economy were to materialize. Bostic further elaborated by saying that the Fed needed to strongly signal that it's not locked into a trajectory. On the same note, Boston Fed President Rosengren said that they were paying close attention to signals from financial markets on rate expectations. "The Fed is mildly accommodative now and I'm perfectly content to stay there," Rosengren added. Pressured by these comments, the US Dollar Index reversed all of the gains it recorded on Tuesday and was last seen down 0.65% on the day at 95.28.

On the other hand, British Prime Minister Theresa May's government got defeated for the second time in two days on her Brexit legislation as the Parliament voted in favour of the amendment to force the government to announce the next steps if May's Brexit deal were to get voted down next week.

Technical levels to watch