In addition to the FOMC meeting, the focus will also be on the results of the central bank of England (BOE) meeting for the market to evaluate the current monetary policy setting, whether to continue tightening or easing policy.
So, the Pound and the US dollar will trade riskier throughout the week ahead of the release of the US NFP employment data report at the end of the week.
The pound still failed to show a clear direction of movement by moving flat over the past week.
Data readings for the UK's manufacturing and services sectors which were still below the 50.0 point level published last week continued to weaken investor confidence in the country's economy.
The price movement on the chart of the GBP/USD currency pair if examined last week was flat in the zone range of around 100 price pips.
The 1.2400 zone remains seen as an obstacle for prices to continue the bullish trend to higher levels, while the RBS (resistance become support) zone at 1.23000 is still seen as price support from falling lower.
The price movement hovering around the Moving Average 50 (MA50) level on the 1-hour time frame on the GBP/USD chart also failed to present a clear signal for further price direction.
Therefore, the market is now awaiting the results of the FOMC and BOE meetings for expected price movements ahead of February trading.
For the expectation of an increase if it continues, the price that passes the resistance zone at 1.24000 will continue to climb higher towards 1.25000 as the nearest target.
Reaching that height has recorded the latest price high for the 7-month trading period.
However, if the price fails to pass 1.24000, the price is likely to drop back towards the support level of 1.23000 and test the RBS (resistance become support) zone.
If the bearish trend indicators are clearer, the price will plunge lower towards 1.22000.
