GBP/USD consolidates near 1.2800 ahead of FOMC decision

Cable is rising for the second day in a row boosted by a weak US dollar. The pair is consolidating near the 1.2800 handle as markets await the FOMC decision and Janet Yellen’s press conference. 

GBP/USD was hovering near 1.2700 with the pound facing some pressure after UK jobs data. The release of the US retail sales and CPI report triggered a sharp decline of the greenback in the market and the pair jumped almost a hundred pips. 

It peaked at 1.2816, the highest level since the day of the UK election results. Currently, it trades slightly below 1.2800, holding a bullish tone. 

In a few minutes, at 18:00 GMT the Fed will release its statement with the decision and also updated projection. Volatility is likely to rise sharply. A 25 bps rate hike is expected. 

Technical levels 

To the upside, resistance levels might be located at 1.2815/20 (Daily high), 1.2870 and  1.2900. On the downside, support now might be seen at 1.2765 (20-hour moving average), 1.2720 (daily low) and 1.2700. 
 

Key Notes

FOMC Preview: 13 major banks expectation from June meeting

We are closing into the FOMC’s June policy meet decision and as the clocks tick closer to the decision timing, following are the expectations as forecasted by the economists and researchers of 13 major banks along with some thoughts on the future course of Fed’s action.