Market Overview

GBP/USD Forecast: Likely To Consolidate Ahead Of FOMC Minutes


The GBP/USD pair stalled its recent recovery move and seesawed between tepid gains and minor losses through the early European session on Wednesday. After two consecutive days of up-move, the pair now seems to have found a tough resistance near the 1.3220-25 region. A set of conflicting UK macro data, released on Tuesday, had no meaningful impact on major and absent major market moving releases on Wednesday would turn investors’ attention to the key FOMC meeting minutes.

Meanwhile, US Dollar was weighed down by uncertainty over the US President Donald Trump's tax overhaul plan and hence, today's publication of the FOMC minutes could act as a key catalyst for the pair's near-term momentum ahead of the next BoE monetary policy meeting.

Technically, the pair is holding with mild positive bias and hence, a follow-through buying interest beyond 1.3220-25 supply zone could accelerate the up-move towards 1.3265 intermediate resistance ahead of the 1.3300 handle and the next major hurdle near mid-1.3300s.

On the flip side, weakness back below 1.3180 level might continue to find some support at the 50-day SMA near the 1.3135 region which, if broken, would turn the pair vulnerable to slide back below the 1.3100 handle towards 1.3075 (Monday's low) en-route to the 1.3030-25 area.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Forex FXStreet FXstreet.comForex Markets


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