GBP/USD fails to hold above 1.28, eyes on FOMC minutes
- PM May's government loses another key vote on Wednesday.
- Dovish Fed comments weigh on the greenback.
- FOMC meeting minutes expected to shed light on policy outlook.
The GBP/USD pair spent the first half of the day in a relatively tight range on Wednesday before gaining traction in the early NA session as the greenback came under heavy selling pressure. Although the pair broke above the 1.28 handle, it failed to preserve its momentum as the latest Brexit headlines from the UK made it difficult for the British pound to stay resilient against its peers. As markets are getting ready for the FOMC to release its meeting minutes, the pair is trading near 1.2777, adding 0.45% on a daily basis.
While speaking at an event in Tennessee, Atlanta Fed President Raphael Bostic said he was open to a rate if the downside risks on the economy were to materialize. Bostic further elaborated by saying that the Fed needed to strongly signal that it's not locked into a trajectory. On the same note, Boston Fed President Rosengren said that they were paying close attention to signals from financial markets on rate expectations. "The Fed is mildly accommodative now and I'm perfectly content to stay there," Rosengren added. Pressured by these comments, the US Dollar Index reversed all of the gains it recorded on Tuesday and was last seen down 0.65% on the day at 95.28.
On the other hand, British Prime Minister Theresa May's government got defeated for the second time in two days on her Brexit legislation as the Parliament voted in favour of the amendment to force the government to announce the next steps if May's Brexit deal were to get voted down next week.
Technical levels to watch
Today Last Price: 1.2777
Today Daily change: 57 pips
Today Daily change %: 0.448%
Today Daily Open: 1.272
Previous Daily SMA20: 1.2672
Previous Daily SMA50: 1.2773
Previous Daily SMA100: 1.2896
Previous Daily SMA200: 1.3143
Previous Daily High: 1.2798
Previous Daily Low: 1.2706
Previous Weekly High: 1.2815
Previous Weekly Low: 1.2438
Previous Monthly High: 1.284
Previous Monthly Low: 1.2477
Previous Daily Fibonacci 38.2%: 1.2741
Previous Daily Fibonacci 61.8%: 1.2763
Previous Daily Pivot Point S1: 1.2685
Previous Daily Pivot Point S2: 1.265
Previous Daily Pivot Point S3: 1.2594
Previous Daily Pivot Point R1: 1.2777
Previous Daily Pivot Point R2: 1.2833
Previous Daily Pivot Point R3: 1.2868