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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