GBP/USD Stalling at Resistance Ahead of FOMC

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GBP/USD Stalling at Resistance Ahead of FOMC

GBP/USD has been rallying since making a low on the year near 1.4950. It is now trading around 1.52 ahead of the FOMC meeting. Let’s take a look at the technical set up.

Price is now back near the highs from the previous consolidation range. The 1.5270 high and the 1.51 handle are key levels with the FOMC announcement coming up later today. If the FOMC sounds dovish, and the language projects a delay in the rate hike until at least the second half of 2015, then the USD might fall, and the GBP/USD would have a good chance to break above 1.5270.

If the FOMC is still going with its plan to raise rates by mid-2015, then GBP/USD is likely to hold below 1.5270, and threaten the 1.51 handle. If it can also push below a common support pivot 1.5055, the bearish trend should be revived, and pressure will be on the 1.4950 low, with risk of breaking towards the 1.49 handle.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.