The GBP/USD it has oscillated after the publication of the Fed statement and the comments of its Chairman, Jerome Powell. The pair first fell to 1.3842, the new daily low, and subsequently rose almost 70 pips to 1.3911, its highest level in a month.
Several comments from Powell sent the dollar down in the last few minutes, all referring to the reduction of the bond buying program or tapering:
“The Fed continued to assess progress toward tighter targets and considered the pace and composition of the reduction in the buying program when it begins.”
“The committee discussed how asset purchases could be changed.”
“The Fed expects the economy to keep moving toward substantial progress.”
“The tapering time will depend on the incoming data.”
“We will give advance notice before any changes.”
GBP/USD Niveles
At time of writing, the pair is trading above 1.3905, gaining 0.19% daily. In case of continuing to rise, the next resistance will appear in the zone of highs of June 28 and 25, 1.3939 / 35. Higher up, the main barrier is at 1.4000, ceiling of last June 23.
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