- US dollar trims gains across the board before the release of the FOMC minutes.
- GBP/USD corrects lower from the highest levels in almost three years on Wednesday.
The GBP/USD pair printed fresh three-day low during the American session on the back of a stronger dollar. Cable dropped to 1.3828 before correcting to 1.3850 ahead of the FOMC minutes.
The pair is having the worst daily performance so far in February on the back of a rally of the US dollar. The greenback was trading already higher and rose further following the releases of US economic data. Inflation, retail sales and industrial production numbers from January came in above expectations. Now attention turns to the FOMC minutes.
The DXYT is off highs after testing the 91.00 area, still positive for the day about to post the highest close since February 5. Over the last hours, the greenback lost momentum as US yields moved off highs. The minutes from the Fed could trigger more moves in the bond market.
From a technical perspective, the GBP/USD trend remains clearly bullish, but after Tuesday’s doji candle, some consolidation or correction ahead seems likely. A daily close above 1.3900 would reinforce the main trend. Under 1.3840, the tone is likely to favor the dollar. A key support area is seen at 1.3750/70, the convergence of horizontal support levels and the 20-day moving average.
Technical levels
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