GBPUSD has been moving for a long time in consolidation from which broke down due to Friday’s declines. For a short period of time declines were continued and despite the fact that the market did not reach any significant support a demand response occurred on Monday. Since then we have seen increases which, according to my yesterday’s projection, have reached the lower limit of earlier consolidation, which coincides with the 38.2% correction of Fibonacci from the last bearish impulse, where today supply reaction has occurred. Continuous rejection of this zone could open the way for further declines.
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While trading on currency pairs and instruments correlated with the US dollar we should remember that FOMC decision on interest rates and a subsequent press conference scheduled for 20:00, whose general tone (hawkish or doveish) may affect USD and cause unusual volatility.
