“¢ The latest US political headlines sent the USD down across the board.
“¢ Further gains remained capped amid cautiousness ahead of FOMC minutes.
The GBP/USD pair has managed to recover around 40-pips from daily lows, with bulls making a fresh attempt to build on the momentum beyond the 1.2900 handle.
Having touched a session low level of 1.2868, the pair caught some fresh bids and was being supported by some renewed US Dollar selling pressure, which remained on the back-foot amid a combination of negative factors.
Against the backdrop of the US President Donald Trump’s critical comments on the Fed policy tightening, the latest US political drama exerted some fresh downward pressure on the greenback and provided a minor lift to the major.
The lawyer of Michael Cohen, the US President Donald Trump’s former personal lawyer, said that Cohen has knowledge of a Russian conspiracy and there is no dispute that Trump committed a crime.
The uptick, however, lacked any strong follow-through and remained capped below overnight swing high level of 1.2925, or near two-week tops, as traders seemed reluctant to place aggressive bets ahead of today’s key event risk – the release of FOMC meeting minutes.
Technical Analysis
Looking at the technical picture, any subsequent strength is likely to confront stiff resistance near the 1.2975-80 region. The mentioned barrier marks a descending trend-line, extending from mid-May and is likely to cap further up-move.
However, a convincing break through the mentioned barrier would negate any near-term bearish bias and assist the pair to continue with its corrective rally from over 13-month lows, touched last week.
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