GBP/USD rises to test last week highs after FOMC statement

Matías Salord FXStreet

GBP/USD jumped to 1.2670, hitting the highest level since last Thursday after the decision of the Federal Reserve to leave rates unchanged at the rate 0.50% - 0.75%, as expected. The pair then pulled back below 1.2640.

Fed leaves rates unchanged as expected at its 1st meeting of 2017

The US central bank did not give strong indications about when is going to raise rates again. Back in December, it rose rates by 25 basis points. Today’s decision was unanimous and the FOMC statement said that job gains remain solid and noted an improvement in consumer and business sentiment.

The greenback, so far, fell modestly in the market. Gold prices headed higher (still down for the day) and equity prices moved to the upside (Dow Jones was up 0.24%).

GBP/USD levels

To the upside, the key short-term resistance is seen at 1.2670 (daily high / Jan 26 high) followed by 1.2700 (psychological) and 1.2725 (Dec 13 high). To the downside, support levels might now be located at 1.2605/10 (American session low / 20-hour moving average), 1.2595 (Jan 31 high) and 1.2540 (daily low).

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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