- GBP/USD moving towards support level
- U.S. FOMC Meeting Minutes
- U.S. Core Durable Goods Orders m/m
Price Movement
Since yesterday, GBP/USD’s movement has been indecisive.
Trend
Overall, GBP/USD is moving on a downtrend.
Macro Background
The U.S. Core Durable Goods Orders data measures the change in the total value of new purchase orders placed with manufacturers for durable goods (excluding transportation items).
It is scheduled for release at 2130 (SGT).
It is expected to perform better than previous month.
If the released data is better than or as expected, the U.S. dollar may strengthen and GBP/USD will move down.
Important Issue
This morning at 3am (SGT), the Fed released the FOMC meeting minutes. It was mentioned in the minutes that “Almost all participants thought that it would be desirable to announce before too long a plan to stop reducing the Federal Reserve's asset holdings later this year”.
Also in the statement, “Many participants observed that if uncertainty abated, the Committee would need to reassess the characterization of monetary policy as "patient" and might then use different statement language.”
In other words, rate hikes may not be ending anytime soon as long as uncertainty becomes less intense.
Technical
This morning, GBP/USD tested and rejected the 1.31 key level.
Currently, GBP/USD is moving towards the support level of 1.30000.
Price Levels
Current Price: 1.30306
Next Resistance: 1.31675
Next Support: 1.30000