GBP/USD remains on the back foot post-FOMC Minutes

The GBP/USD pair has advanced modestly as an immediate reaction to the US FOMC Meeting Minutes, holding above the daily low set earlier in the day at 1.3753. The document reiterated that the Committee expects to maintain an accommodative stance of monetary policy until inflation stands moderately above 2% for some time while achieving maximum employment. Stocks are marginally higher, to the detriment of the greenback. 

Meanwhile, UK data released earlier in the day failed to impress, as the country published the June Halifax Price Index, which contracted by 0.5% MoM, missing the market’s expectations. Also, the UK reported over 32,500 new coronavirus cases, the biggest one-day increase since late January, although there are no news suggesting restrictive measures will be maintained after July 19. 

Technically speaking, the pair has made little progress and is still at risk of falling. The near-term picture favors another leg south, at least as long as the pair holds below the 1.3840 area, where it topped earlier in the day. Beyond the latter, the recovery could extend towards the 1.3900 price zone, where selling interest will likely re-appear. The main support is 1.3730, the low set last Friday.