European currencies such as the Euro and the Pound re -traded higher after the FOMC meeting early Thursday morning had caused the US dollar to depreciate in the market.
But investors will be wary of Pound trading as the gains on display are likely to stagnate ahead of England's central bank policy meeting today.
The Bank of England (BOE) is expected to keep interest rates unchanged, but a statement by previous Governor Andrew Bailey that it is ready to increase bond purchases hints at policy easing by the central bank and will negatively impact the current Pound value.
On the price chart of the GBP/USD pair, a decline was seen in the New York session to the level of 1.38500 before investors saw a significant price jump of up to 120 pips to the level of 1.39700.
But the price movement slowed back in trading that continued into the Asian session this morning.
The rise is expected to continue for the price to test the resistance level of 1.4000 which has failed to be broken over the past few weeks.
Higher gains will be concentrated at the resistance levels of 1.41000 and 1.42000 which were the focus of the price in previous trades.
Still, it is necessary to be vigilant for a bearish reversal situation if the market reacts to the expectation of a dovish-toned statement by the BOE.
The decline will be supported at the RBS zone (resistance become support) around 1.38300 and if the price falls lower, the support zone is seen at 1.37000.
