• The dollar remains under pressure after the FOMC minutes.
• Trading activity is limited as Wall Street remains closed.
• GBP/USD is heading for the highest close in three months.

The GBP/USD it has continued to rise during the American session and has settled at 1.2152, the highest level since mid-August. It goes up for the third day in a row. As the pound maintains its recent gains, the dollar is under pressure.

Cable is up more than 300 points since Tuesday as the UK puts the chaotic months of September and October behind it. The price has approached the 200-Day Moving Average which stands at 1.2180. The last time GBP/USD closed higher was in September 2021.

The short-term bias favors gains, although there are some overbought readings. The 1.2030 area has become initial support, followed by 1.1960. A sharp correction could reach 1.1700 without changing the bullish bias.

The dollar continues to fall after the release of the FOMC minutes on Wednesday. Expectations that the US central bank might slow the pace of rate hikes after four 75 basis point hikes weighed on the dollar and boosted Treasuries. The Fed is likely to continue raising rates as inflation remains high and off target.

On Thursday, price action is limited by Thanksgiving. Wall Street is closed and will have a shorter session on Friday.

technical levels