GBP/USD finds support at 1.50 level

By FXStreet FXStreet (Mumbai) – The GBP/USD pair recovered again from the 1.5 handle in the early US session despite uptick in the treasury yields ahead of the FOMC rate decision.

USD bid ahead of FOMC rate decision

The bid tone on the USD has gained mild pace as the market expects the Fed to hike rates by 25 bps today. The 2-year yield, which mimics rate hike expectations, is up two basis points 0.988%. Still, the GBP/USD pair has managed to recover from 1.5 to trade around 1.5015 levels.

The cable recovered from the low of 1.4983 levels to 1.5020 before falling back to 1.5 and recovering again to 1.5015 levels.

GBP/USD Technical Levels

At 1.5013, the pair faces immediate resistance at 1.5029 (previous day’s low), above which the spot could revisit 1.5087 (61.8% of Apr-Jun rally). A break higher would open doors for 1.5113 (23.6% of 1.5819-1.4895). On the other hand, a break below 1.50 would open doors for a drop to 1.4957 (Dec 8 low), under which the pair could target 1.4895 (latest cyclical low).
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Source:: FX Street