“¢ The USD fails to capitalize on the post-FOMC bounce and helped regain traction.
“¢ The British Pound remained support by optimism over cross-party Brexit talks.
“¢ Market participants now look forward to BoE’s Super Thursday for fresh impetus.
The GBP/USD pair finally broke out of its Asian session consolidation phase and spiked to fresh session tops, around 1.3075-80 region in the last hour.
After yesterday’s late pullback from the 1.3100 handle, over two-week tops, a modest US Dollar pullback helped the pair to regain positive traction on Thursday and turn higher for the fifth consecutive session.
The greenback failed to capitalize on the overnight recovery move that came after the FOMC’s more upbeat assessment of the economic developments and turned out to be one of the key factors driving the pair higher.
It is worth reporting that the US central bank left interest rates unchanged, albeit comments by the Fed Chair Jerome Powell, attributing softening inflation to transitory factors, prompted some USD short-covering move.
Meanwhile, the prevalent bullish sentiment surrounding the British Pound remains supported by the fact that the UK PM Theresa May is targeting to conclude cross-party Brexit talks by mid next week.
It would now be interesting to see if the pair aims back towards conquering the 1.3100 handle or traders opt to lighten their bullish bets amid some repositioning trade ahead of the BoE’s Super Thursday.
Technical levels to watch
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