The chart of the GBP/USD currency pair on Tuesday yesterday was seen to maintain the downward pattern at the beginning of the week showing the Pound moving weaker against the US dollar.
The US dollar however is seen to remain gloomy ahead of the FOMC meeting which makes investors wary of any risks.
The Federal Reserve (Fed) is expected to raise interest rates by 25 basis points to 5.25% and investors are waiting for a signal on whether interest rate hikes will begin to be halted for subsequent meetings.
On the GBP/USD chart yesterday, the price was seen hovering at the 1.25000 level before continuing to decline to reach around 1.24400.
But there was a rebound in the New York session and then the price closed the end of the session trading around 1.24600.
There is a slow rising price pattern displayed at the beginning of the Asian session this morning (Wednesday) and the price is seen to test resistance at the 1.25000 level again.
In addition, the Moving Average 50 (MA50) barrier on the 1-hour charted GBP/USD will also be tested and will give an indication of further price movement.
If the following obstacles are able to be broken through, the price will continue to rise again towards the high level reached last week around 1.25800.
Next, the 1.26000 resistance zone will wait to be tested and broken by the price before the latest high level will be recorded again.
However if the price is more likely to fall lower, the price support zone at 1.24000 becomes the closest area to test.
If it breaks through lower, the decline will continue and will be seen to reach around 1.23000 which was also the focus level before.
