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GBP/USD recovers from lows ahead of FOMC

FXStreet (Córdoba) - GBP/USD bounced from a fresh nearly 5-year low at the beginning of the American session as the pound staged a mild recovery across the board after UK official growth estimate for 2015 was revised up to 2.5% from Dec 2.4%.

In the meantime, the dollar is facing some selling pressure ahead of the FOMC decision scheduled for 18 GMT.

GBP/USD moved off a low of 1.4643, last seen June 210, but the recovery was capped by the 1.4685 area so far. At time of writing, the pair is trading at 1.4660, down 0.58% on the day.

GBP/USD technical perspective

“In the 4 hours chart the price failed again to overcome a bearish 20 SMA now acting as dynamic resistance around 1.4755, whilst the technical indicators are also biased lower in negative territory, supporting further declines should the FED came out with a hawkish speech”, said Valeria Bednarik, chief analyst at FXStreet.

Bednarik locates next supports at 1.4620, 1.4590 and 1.4550, while she places resistances at 1.4670, 1.4710 and 1.4755.

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Karen Jones, chief analyst at Commerzbank noted how AUD/USD held sideways leaving their outlook unchanged.
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