FOMC Handler, GBP/USD Plunges 150 Pips! - Kakiforex.com - Financial Market Media No. 1 in the World FOMC Handler, GBP/USD Plunges 150 Pips! FOMC Handler, GBP/USD Plunges 150 Pips!
InstaForex

June 17, 2021

FOMC Handler, GBP/USD Plunges 150 Pips!

 The pound sterling continued to move weaker against the US dollar after the results of the FOMC meeting earlier this morning were in favor of a strengthening US dollar.


While the Federal Reserve (Fed) maintains current interest rates and policies, positive indications for future economic and policy projections have attracted investors to increase demand for the US dollar in the market.


While the Pound continues to be expected to move weak after worrisome UK economic sentiment following the extension of the movement restriction period to 19 July.




The employment data report as well as UK inflation data published this week also still failed to trigger a surge in the value of the Pound.


Thus, it can be seen that the price movement on the chart of the GBP/USD currency pair is increasingly displaying a bearish pattern for a clearer bearish trend signal.


If observed on yesterday's trading, the price is initially expected to test the level of 1.41000 at the SBR (support become resistance) zone. However, prices managed to rise slightly higher from that level after the published UK inflation data rose.



But after moving horizontally above that level until continuing at the beginning of the New York session, the price has plunged 100 pips following the results of the FOMC meeting making yesterday's daily decline recorded around 150 pips.


The decline has managed to break the support level of 1.4000, but after the slow return movement continued in the Asian session on Thursday morning, the price hovered again around that level.


A lower decline is expected for the price to head to the level of 1.39200 which was the focus zone in early May trade.


If the rally is successfully repeated, the SBR zone of 1.41000 is still the focus of the price to be tested before a higher bullish signal.


Passing that zone will expect the price to rise again to the previous resistance zone of 1.42000.