GBPUSD: Could the FOMC set up a resistance break?

14 июн. 2023 г.

Today's focus: GBPUSD

Pattern – HH HL continuation
Possible targets – 1.2683, 1.2980
Support – 1.2305, 1.2493
Resistance – 1.2640, 1.2660

Today’s focus is on the GBPUSD after buyers made another strong move higher on Wednesday. That move continues the series of HLs and HHs this is a good thing to see in the current short-term uptrend. As discussed in today’s video, our attention is now on key resistance that has stood since May 22.

Could a dovish tone from the Fed set the USD up for more downside? We did see a fightback after the CPI data and the Core remained high at 0.4%. If the Fed hold rates and hint more towards the dovish side in the statement, could that set the GBPUSD up for a new test or break of resistance, setting off a new trend continuation?

For now, the GBPUSD, despite its short-term bullish move, remains consolidation bound.