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  • Cable continues to move in ranges ahead of FOMC statement.  
  • US dollar marginally higher across the board on a quiet session after mid-term elections.  

The GBP/USD pair erased losses during the last hour and rose back above 1.3100. Earlier bottomed at 1.3085 and then bounced to the upside. It hit a session high at 1.3129 and then pulled back to 1.3115. Price action remains limited ahead of the FOMC meeting among majors.  

Cable continues to hold a bias skewed to the downside despite the recent bounce from the lows. News about Brexit today had a limited impact on the pound and US dollar strength has been so far, the main driver in GBP/USD.  

At 19:00 GMT, the Federal Reserve will release its statement. No change in rates is expected and attention will focus on the words of the statement. In the case of no surprises, market reaction could be muted, favoring the ongoing consolidation in GBP/USD.  

Levels to watch  

To the upside, the immediate resistance is seen at 1.3130 (US session high), followed by 1.3150 (Nov 8 high) and 1.3175 (Nov 7 high). On the flip side support levels might be located at 1.3085 (Nov 8 low), 1.3055/60 and 1.3020 (Nov 6 low).