GBP/USD rises back above 1.2900 ahead of FOMC minutes as pound recovers

Pound trims losses across the board amid an improvement in risk sentiment.
US Dollar mixed ahead of the FOMC minutes due at 18:00 GMT.

Matías Salord FXStreet

The GBP/USD rebounded from the 1.2840 area and tested daily highs at 1.2930, unable to break above. Ahead of the FOMC minutes, it is hovering around 1.2900, up 40 pips for the day.

The pound managed to recover from earlier losses after Brexit concerns following comments from Ireland’s Foreign Minister. The improvement in risk sentiment also helped sterling.

In Wall Street, the Dow Jones and the Nasdaq gains more than 1.50%. The rally in equities weakened the US dollar. The DXY is falling 0.05%, below 93.70. In about 90 minutes, the Federal Reserve will release the minutes of its latest meeting. The impact of the Fed’s document could be limited considering that over the last few days many FOMC members have spoken in public, including Chair Powell.

Technical outlook

Cable found support so far above the 20-day moving average that stands at 1.2855. A daily close clearly below would open the doors to more weakness ahead. The next support stands at 1.2800. On the upside, resistance is seen at 1.2940, followed by the 1.3000 area.

GBP/USD

Overview
Today last price	1.2906
Today Daily Change	0.0027
Today Daily Change %	0.21
Today daily open	1.2879

Trends
Daily SMA20	1.2864
Daily SMA50	1.3035
Daily SMA100	1.278
Daily SMA200	1.2716

Levels
Previous Daily High	1.3007
Previous Daily Low	1.2867
Previous Weekly High	1.2979
Previous Weekly Low	1.2747
Previous Monthly High	1.3482
Previous Monthly Low	1.2676
Daily Fibonacci 38.2%	1.292
Daily Fibonacci 61.8%	1.2954
Daily Pivot Point S1	1.2828
Daily Pivot Point S2	1.2777
Daily Pivot Point S3	1.2688
Daily Pivot Point R1	1.2969
Daily Pivot Point R2	1.3058
Daily Pivot Point R3	1.3109

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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