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GBP outlook as GBP/USD gets rejected from pre-FOMC highs
['Elior Manier', 'Market Analyst']
MarketPulse
The currency market had been dormant for a while, but this is now a theme of the past yet again.
Throughout August, a first move higher from the Pound got met with a subsequent consolidation until the beginning of this month .
GBP/USD peaked just above 1.37 on Wednesday’s announcement, but that rally didn’t stick — the pair now trades roughly 1.70% lower as the dollar staged a fierce comeback.
What flipped the script was a rapid unwind of pre-FOMC downbeat USD bets: Powell’s more balanced tone and a re-credibilized Federal Reserve re-anchored the dollar (the latter could still be a bearish theme for the USD in the future).
Let’s break down the multi-timeframe levels for GBPUSD and where to look next.
['gets'
'uncomfortably'
'wednesdays'
'dollar'
'theme'
'gbp'
'gbpusd'
'outlook'
'uk'
'unwind'
'usd'
'prefomc'
'highs'
'countries'
'rejected']