- The pound sterling clears the losses during the American session.
- GBP / USD bounces from 1.3800 and finds resistance below 1.3900.
The GBP / USD has previously fallen to 1.3807 on Tuesday, hitting a one-week low and then has rebounded and has risen to 1.3895 during the American session. The recovery has lost momentum and, at the time of writing, is trading at 1.3880, slightly lower on the day.
On a mixed day for markets and currencies, the British pound has a two-part day. Initially, it has probably been affected by the comments of the Governor of the Bank of England and after the European Union took legal action against the United Kingdom per the Northern Ireland protocol. During the second half of the day, the pound erased most of its losses.
Economic data in the US was below expectations, with retail sales falling more than expected and industrial production falling in an unexpected contraction. The numbers boosted the yen, but the US dollar also gained some ground.
While the DXY index remains at daily highs near 92.00, the GPB / USD is in neutral territory and the EUR / USD at new weekly lows. The best performer among the major European currencies is the Swiss franc.
Market participants await the outcome of the two-day FOMC meeting. On Wednesday, the central bank of the United States will announce its decision on monetary policy. Thursday will be the turn of the Bank of England. No change in current stance is expected, so the focus will be on the reaction of central banks to the recent surge in bond yields.
GBP / USD technical levels
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