GBP/USD off lows, still in the red below 1.2500 handle ahead of FOMC

  • Softer UK consumer inflation figures exerted some intraday pressure on the Sterling.
  • Reluctance to place aggressive bets ahead of FOMC helped limit the downside.

The GBP/USD pair held on to its weaker tone through the early North-American session on Wednesday, albeit has managed to recover few pips from daily lows.
With investors looking past the latest Brexit optimism, the pair continued with its struggle to find acceptance above the key 1.2500 psychological mark and retreated from multi-week tops amid a modest pickup in the US Dollar demand. The intraday slide accelerated further following the release of softer-than-expected UK consumer inflation figures, though lacked any strong follow-through selling.

Downside remains limited ahead of FOMC

A sharp intraday fall in the US Treasury bond yields kept a lid on any runaway rally for the greenback and helped limit any deeper losses for the major. Moreover, investors also seemed reluctant to place any aggressive bets, rather preferred to wait on the sidelines ahead of the highly anticipated FOMC monetary policy decision, scheduled to be announced later during the US trading session.
The Fed is widely expected to cut interest rates by another 25 bps, though opinions over further/aggressive easing remained divided. Hence, investors will closely scrutinize the accompanying monetary policy statement and updated economic projections. This coupled with the Fed Chair Jerome Powell's comments during the post-meeting press conference should produce some meaningful trading opportunities.

Technical levels to watch


Today last price 1.2463
Today Daily Change -0.0036
Today Daily Change % -0.29
Today daily open 1.2499
Daily SMA20 1.2277
Daily SMA50 1.2279
Daily SMA100 1.2507
Daily SMA200 1.2741
Previous Daily High 1.2528
Previous Daily Low 1.2393
Previous Weekly High 1.2508
Previous Weekly Low 1.2234
Previous Monthly High 1.231
Previous Monthly Low 1.2015
Daily Fibonacci 38.2% 1.2476
Daily Fibonacci 61.8% 1.2444
Daily Pivot Point S1 1.2419
Daily Pivot Point S2 1.2338
Daily Pivot Point S3 1.2283
Daily Pivot Point R1 1.2554
Daily Pivot Point R2 1.2609
Daily Pivot Point R3 1.269



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD nears weekly highs as risk-on returns

The EUR/USD pair was dragged higher by a soaring Pound, now hovering around 1.1040. The market is all about sentiment, and this last dependent on Brexit and the US-China trade relationship.



GBP/USD surges to 5-month highs on reports of a draft Brexit deal

GBP/USD has leaped toward 1.28, hitting the highest since May. Reports suggest that the UK and the EU are zooming in on a deal. Details are awaited and negotiations continue.


USD/JPY in search of a firm direction, stuck in a range below mid-108.00s

The prevalent risk-on mood weighed on the JPY’s safe-haven status and extended support. A sharp fall in the US bond yields undermined the USD and failed to impress bullish traders.


Gold slumps to $1,480 area on Brexit hopes

The troy ounce of the precious metal continued to weaken in USD terms in the American trading hours as markets cheered reports claiming that the European Union (EU) and the United Kingdom (UK) are closing in on a draft Brexit deal that could be announced before the end of the day on Tuesday.

Gold News

Cryptos: Incumbents don't know to play well

The Libra project led by Facebook remains on track despite the first defections. Those who have abandoned the project are mostly payment gateways. Bitcoin's lack of tone weighs on Ethereum's mood.

Read more