GBP/USD: Offered on Dollar Positives in Statement
The Fed left rates on hold with the Fed Funds Rate in the range of 0.25%
to 0.50%, and offered less than hawkish statement that, "The stance of
monetary policy remains accommodative." GBP/USD is better offered on the
event with dollar bulls lapping up removals of the lack of balance of
risks and reference to global risks from the statement.
GBP/USD was rising with the tides on a weaker dollar going into the meeting where it had reached a high of 1.4623. We are now just over cent lower at time of writing, but the price reached 1.4472 the knee-jerk on the FOMC.
GBP/USD penetrated the rising 20 sma on the 4hr chart on that knee-jerk at 1.4513 and this is coming in now as a a support as prices start to stabilize a little after the event. Below there we have the trend line support at around 1.4350 as next major downside target, but the 100 sma on the 1hr sticks would need to give way at 1.4473 and today's low. To the upside, 1.4600 and 1.4650 are key psychological levels below 3rd Feb high and 2016 highs of 1.4666. The 200 dma is located at 1.4889.