PipGains

GBPUSD direction and FED move this week

The GBPUSD currency pair is a popular forex trading pair that represents the exchange rate between the British pound and the US Dollar.

The pair had gained bullish momentum and travelled to 1.2800 area. There has good consolidation between 1.2700 and 1.2800 from last one month. The question arises whether is consolidation done or not. There will FED meeting this week. Will it trigger the pair and the Cable can see fresh move? The PMI figure has been stronger than the forecast. The Dollar move had not been justified by this value. The traders are looking for more clarification.

Technically, GBPUSD is consolidating around 68% in Fibonacci retracement. Looking into the chart it seems like support lies around 1.2598. The level is 50% of fibonacci level. The resistance is at 1.2872. The oscillator indicators are not providing any clear direction.

In summary GBPUSD pair is currently trading at 1.2680. The bias is towards the downside. The pair is influenced by a variety of factors, including economic data releases, political events and central bank policy decision. This week FED rate cut pivot might provide any further direction to the currency pair.

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