Sterling-Dollar pair back into the week’s highs on a dovish Fed. Brexit angst has been shelved for the moment, but December 11th’s critical House of Commons vote still waits in the wings. GBP/USD is trading into yesterday’s highs near 1.2850 in early Thursday action after a surprisingly dovish Federal Reserve chair Jerome Powell cast doubt on the Fed’s current path of rate hikes, inadvertently suggesting to broader markets that the US Fed may pull the plug on their current pace of rate hikes much sooner than expected if US economic continues to hint of a broader slowdown. Markets reacted by selling the Greenback across the board, and the Cable is enjoying a brief reprieve from Brexit selling, bolstered by the off-kilter USD. Powell’s dovish shift sparks a sell-off in the greenback It’s a mid-tier Thursday for the GBP on the economic calendar, and the most meaningful piece of data will be October’s Mortgage Approvals at 09:30 GMT, which are expected to decline slightly to 64.5 thousand from 65.27 thousand, but the following US market window will likely see continued Dollar-heavy action, with US Personal Consumption Expenditure Price Index at 13:30 GMT (forecast 1.9%, previous 2.0%), followed by the latest FOMC Meeting Minutes later on at 19:00 GMT, and given Fed head Powell’s latest dovish appearance, extra emphasis could be placed on US data as investors grapple with a suddenly uneasy Federal Reserve. GBP/USD levels to watch The challenge for Cable bulls, according to FXStreet’s own Valeria Bednarik, is to find a way to keep the GBP/USD upright, with continued Brexit anxiety likely to continue in the near future, but for the time being the GBP is being well-supported by a softened Greenback: “the market forgot about Brexit for once after US Federal Reserve head, Powell, hinted policymakers could pause their rate hike cycle amid increasing risk of slower growth ahead. The GBP/USD pair soared to the current 1.2830 price zone on dollar’s sell-off, although the risk of further declines on more Brexit woes is not out of the table. The 4 hours chart shows that the pair advanced above its 20 SMA but also that the 200 EMA heads south above the current level, while the Momentum indicator barely advances below its 100 level. The RSI indicator, on the contrary, heads north around 58, suggesting the current rally may continue during the upcoming sessions, or at least until the next Brexit negative headline gives speculative interest a reality check.” Support levels: 1.2810 1.2770 1.2735 Resistance levels: 1.2865 1.2900 1.2940 FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Australia: Upside surprise in Q3 CAPEX survey – Westpac FX Street 4 years Sterling-Dollar pair back into the week's highs on a dovish Fed. Brexit angst has been shelved for the moment, but December 11th's critical House of Commons vote still waits in the wings. GBP/USD is trading into yesterday's highs near 1.2850 in early Thursday action after a surprisingly dovish Federal Reserve chair Jerome Powell cast doubt on the Fed's current path of rate hikes, inadvertently suggesting to broader markets that the US Fed may pull the plug on their current pace of rate hikes much sooner than expected if US economic continues to hint of a broader slowdown. Markets reacted by… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.