The GBP/USD pair has been trading downwards since the 7th of June 2016, with the bearish pressure leading the price from as high as 1.4659 to as low as 1.4092, amid escalating Brexit worries.
The major fell during the course of the day on Tuesday, reaching the daily low of 1.4092, its weakest level since mid-April. Today, the pair recovered from its losses, rising up to the session high of 1.4215. At the beginning of the North American session, the pair trades at 1.4189. The sterling found support from upbeat U.K. labour market data, particularly from a strong average earnings growth report that is considered to be a measure of inflationary pressure.
Later in the session, the Federal Reserve will announce its monetary policy decision, along with the bank’s economic, inflation and interest rate forecast for the next two years and would be followed by a conference held by Janet Yellen. Market watchers will be also monitoring BoE’s monetary policy decision tomorrow morning.
On a subsequent break above 1.4222, the pair could rise up to 1.4308 and 1.4373 in extension.
On the downside, in the scenario where the price breaks below 1.4092, the pair might continue to reach 1.4013 and 1.3965 respectively.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.