- The US dollar cuts gains on all fronts ahead of the release of the FOMC Minutes.
- GBP / USD corrected lower from the highest levels in nearly three years on Wednesday.
The pair GBP/USD It hit a fresh three-day low during the US session supported by a stronger dollar. The pound fell to 1.3828 before correcting towards 1.3850 before the FOMC Minutes.
The pair is having the worst daily performance so far in February due to a rally in the US dollar. The dollar was already trading higher and rose further after the release of US economic data. January inflation, retail sales and industrial production figures beat expectations. Now the focus is on the FOMC Minutes.
The DXY is moving away from highs after testing the 91.00 zone, still positive for the day about to record the highest close since February 5. During the past few hours, the dollar lost momentum as US yields broke out of highs. The Fed minutes could trigger more moves in the bond market.
From a technical perspective, the GBP / USD trend is still clearly bullish, but after Tuesday’s doji candle, some consolidation or correction seems likely. A daily close above 1.3900 would reinforce the main trend. Below 1.3840, the tone is likely to favor the dollar. A key support area is seen at 1.3750 / 70, the convergence of horizontal support levels and the 20-day moving average.
Technical levels
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