GBP/USD Flats at 11-Week Highs, Targets $1.2600


 The Pound currency was among those that managed to show excellent performance on Tuesday's trading yesterday when the US dollar was still under pressure.

The focus is on the publication of the minutes of the FOMC meeting earlier this morning which projects that the Federal Reserve's (Fed) monetary policy will be maintained.

Interest rates are expected to remain unchanged at the December meeting, but investors are wary as meeting members are seen as still considering further policy tightening if the situation calls for it.

The US dollar moved slightly better after the minutes were published and limited further strengthening of the Pound until trading resumes today (Wednesday).

On the price chart of the GBP/USD currency pair, a more flat movement was displayed yesterday compared to the bullish pattern that continued at the beginning of the week.

The most recent 2-month high was noted around 1.25600 and the price was seen flat below that level until the end of the New York session and early in the Asian session this morning.

Even so, investors still see the price movement remain on a bullish trend where the price remains above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart.

If the price increase continues, the latest high level will continue to be recorded with a target to reach 1.26000.

The next higher increase will target the height of 1.27000 which became an important level tested at the closing trade last August.

Meanwhile, for the expectation of a price drop if it happens, the level of 1.25000 will be tested which will give an indication of further price movements.

If the price drops lower and also crosses the MA50 support level, it is likely that the price will start a bearish trend movement after that.

The initial target is to head for around 1.24000 with price reaction around that to be observed.