The US dollar reacted positively after the end of the FOMC meeting early this morning after the Federal Reserve (Fed) met expectations to keep interest rates unchanged at 4.50%.
Fed Chairman Jerome Powell commented on the current situation of the United States (US) economy with a cautious tone by taking a wait-and-see approach.
After the Fed, the market is now awaiting the outcome of the Bank of England (BOE) policy meeting today (7 pm) with expectations for a 25 basis point cut to 4.25%.
The US dollar moved weakly for a while in the Asian session this morning while the Pound began to show a decline in the European session ahead of the BOE meeting.
Observing the price movement on the GBP/USD currency pair chart, the price, which had made a decline to the 1.33000 zone after the end of the FOMC meeting, later showed a rebound.
The price surge reached around 1.33500 before retreating back down after testing the Moving Average 50 (MA50) resistance line on the 1-hour chart.
The price was pushed below 1.33000 and is seen heading towards last week's low around 1.32600.
The decline is expected to continue lower with the nearest target at the 1.32000 zone.
A clearer bearish signal could prompt further declines based on the latest policy meeting guidance.
On the other hand, if the price manages to make a rebound above 1.33000, the MA50 barrier will attempt to be broken.
Next, the resistance zone at 1.34000 will be the target to be tested after 2 consecutive weeks of the zone constraining the price's advance higher.
