GBP/USD hits fresh daily highs above 1.3900 as US dollar weakens ahead of FOMC
- US Dollar drops sharply across the board, DXY his fresh low under 90.80.
- GBP/USD remains in recent range, now closer to the upper limit.
- Federal Reserve statement due at 18:00 GMT, then Powell’s press conference.
The GBP/USD bounced at 1.3860 and turned to the upside. Recently, amid a broad slide of the US dollar, it climbed to 1.3922, hitting a fresh daily high. It is hovering around 1.3900 ahead of the FOMC statement.
At 18:00 GMT, the Fed will announce its decision. The central bank is expected to keep its monetary assign unchanged. Chari Powell will hold a press conference at 18:30 GMT. No forecasts will be released today. The tone and the signs of the central could have an impact on markets.
Earlier on Wednesday, in the UK the Electoral Commission opened an investigation into the financing of the refurbishment of PM Johnson’s residence, on suspicions an offense may have been committed. The pound dropped only modestly after the report and then recovered.
From a technical perspective, the GBP/USD awaits the FOMC decision in the range that has been in place since the beginning of the week with a strong barrier near 1.3930 and a support at 1.3860. Those are the two key levels to consider that are keeping cable under control.
Technical levels