The GBP/USD climbs in the North American session as traders brace for the Federal Reserve’s (Fed) last monetary policy meeting, which will likely unveil a 50 bps rate hike and release its update in the Summary of Economic Projections (SEP). Hence, the GBP/USD is trading at around 1.2393, registering gains of 0.28% after hitting a high of 1.2400.

From a daily chart, the GBP/USD remains upward biased, though off the highs of the week reached on Tuesday at 1.2443. The Relative Strength Index (RSI) at bullish territory suggests that buyers remain in charge. However, as it approaches overbought conditions, caution is warranted. The Rate of Change (RoC) edging lower means buying pressure is fading, so mixed signals suggest traders should wait until after the Fed’s decision.

The GBP/USD key resistance levels are 1.2400, the 1.2500 psychological figure, followed by the June 7 daily high of 1.2599. On the downside, the GBP/USD essential supports are 1.2300, followed by the intersection of the 20 and 200-day Exponential Moving Averages (EMAs) around 1.2109/11.

In the Four hour chart, the uptrend may be expected to continue, while market is trading above support level 1,2350 – 1,2306, which will be followed by reaching resistance level 1,2667.

The uptrend may be expected to continue, while market is trading above support level 1,2350 – 1,2306, which will be followed by reaching resistance level 1,2667.

In the daily time frame the uptrend may be expected to continue, while market is trading above support level 1.1661, which will be followed by reaching resistance level 1.2667 – 1,2994.

An downtrend will start as soon, as the market drops below support level 1.1661, which will be followed by moving down to support level 1.0520.

GBPUSD waiting for FED rate hike

Dec 14 2022