What happened to the GBP/USD currency pair chart after the FOMC meeting early this morning?
At first the price increase was shown to reach the level of 1.27500, but after the market evaluated the statement delivered by the Chairman of the Federal Reserve (Fed) Jerome Powell at the FOMC meeting, the price returned to decrease again following the strengthening of the US dollar.
After interest rates were kept at 5.50%, Powell said the central bank did not plan to lower interest rates in March as previously expected.
The Fed will be keeping an eye on the labor sector with the NFP employment data report at the end of the week coming into focus.
Today's focus will be on the Bank of England (BOE) policy meeting at 8pm later with interest rates expected to be kept at 5.25%.
What is Pound's reaction after the meeting?
Looking at the GBP/USD chart, the price made an early rise before plunging back below the 1.27000 level.
The price reached the 1.26600 level after the FOMC and continued trading in the Asian session this morning saw the price hovering slowly below the 1.27000 zone.
The Moving Average 50 (MA50) line on the 1-hour time frame of the GBP/USD chart is seen to be tested and become an obstacle for the price, the downward pattern is likely to continue.
If it continues to a lower level, the price will aim at the previous support level that was tested in mid-January, which is 1.26000.
However, if the price manages to make a higher increase again past 1.27000, the resistance zone at 1.28000 will be reached after last week's height is also overcome.
