GBP/USD might decline on a hawkish FOMC meeting result – FXStreet

FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, gives the technical outlook and key levels for GBP/USD, viewing that the pair might see a decline on a hawkish outcome from the Fed meet.

Key Quotes

“The British Pound was hit hardly early in the European session, as local employment figures showed that the unemployment rate remained steady at 5.7%, whilst wage grow remains sluggish.”

“Furthermore, the BOE's Minutes revealed that all of the MPC voting members decided to maintain the current economic policy unchanged suggesting a rate hike is out of the table for now.”

“The 1 hour chart shows that the price develops below a bearish 20 SMA whilst the technical indicators head lower in extreme oversold levels, with no signs of changing bias.”

“In the 4 hours chart the price failed again to overcome a bearish 20 SMA now acting as dynamic resistance around 1.4755, whilst the technical indicators are also biased lower in negative territory, supporting further declines should the FED came out with a hawkish speech."

“Support levels: 1.4620 1.4590 1.4550”

“Resistance levels: 1.4670 1.4710 1.4755”