GBP/USD technical analysis: Cable challenges Wednesday’s highs near 1.2230 ahead of the FOMC meeting

 

 

 

Cable is correcting some of the losses triggered by UK PM Boris Johnson in the first two days of the week. The prospect of a no-deal Brexit sent the Pound down across the board. Later on at 18:00 GMT, the FOMC meeting can cause high volatility. The Federal Reserve is expected to cut 25bps. The market will pay close attention to Fed’s Chairman Powell comments. 

 

 

 

GBP/USD broke above 1.2216 resistance as it is challenging the Wednesday high. The correction up can extend towards 1.2266 and 1.2291 according to the Technical Confluences Indicator.

 

 

 

Cable is trading above the 50/100 SMAs suggesting a correction up in the short term. Support can be seen at 1.2190, 1.2165, 1.2133 and 1.2100 according to the Technical Confluences Indicator.