GBP/USD Technical Analysis: Focus Turns to the Fed. Yesterday, the cable rose despite a leaked document that showed the U.K’s economy will negatively be affected by Brexit. Perhaps, this happened because to investors, this was not actually news.
This month, the pound has continued its climb against the dollar. It has risen from a low of 1.3460 to a high of 1.4336. The upward climb was partly attributed to a weaker dollar and the positive economic data from the UK.
As shown, from its highest monthly point, the pair has seen two retracements. On 25th, the pair has a 23.6 Fibonacci retracement and then bounced back. It then made another 38.2% retracement, which saw the pair go to 1.3981.
Today, the focus will be the Fed, which will announce its interest rate decision and provide forward guidance on future rates. Analysts expect the Fed to continue the gradual rate increases by adding 25 basis points. Any major news that comes from their meeting may cause significant movements in the pair.