- The dollar gains momentum with the beginning of the FOMC meeting.
- The pound weakens ahead of the Bank of England.
- GBP / USD with a bearish bias, but for now with support above 1.3630.
The GBP / USD is falling again on Tuesday, for the third day in a row, although it has managed to cut losses in recent hours. The pair reached 1.3624, the lowest since October 13, before bouncing back to the 1.3650 area.
A general rise of the dollar in the market is being the key factor for the decline of the GBP / USD. The greenback is appreciated ahead of the two-day meeting of the Federal Reserve. An announcement of a cut in the purchasing program is expected on Wednesday. The last milestone event of the week will be the October US employment report on Friday.
Secondly, the pound is still showing some weakness. Moderation in the expectation of an interest rate hike on Thursday by the Bank of England on Thursday weakened it. The message from various members of the Monetary Policy Committee warning of rising inflation was partly offset by requests for caution from other officials.
Technically GBP / USD maintains a bearish bias although if it manages to stay away from the lows of the day, some consolidation would be expected before the Fed. A return below 1.3630 would increase pressures, with the next strong support at 1.3570. On the upside, the key level can now be found around 1.3700 / 10, where the 20 and 55 day moving averages converge.
Technical levels
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