- GBP/USD bears are finding demand at the 61.8% ratio support zone.
- The bulls control the bullish trend towards the Fed.
The British pound broke out of the consolidation late in the New York morning and is finding demand in an area of daily support on the charts. However, at 1.1900, the pair is holding precariously near recent trend lows ahead of the Fed’s 25bp hike on Wednesday.
A hawkish line result could send GBP/USD back below Monday’s low at 1.2799 as traders price in a less harsh 25bp rise at the Bank of England meeting on August 3rd.
Below is the market structure on the daily chart and the prospects for a move higher on a dovish Fed outcome:
GBP/USD daily chart
GBP/USD remains at the front of the uptrend and above last month’s highs. Considering the long cut by breakout traders in early July, at the 61.8% ratio, there is a case for going higher. However, it depends on the Fed.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
