Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
British Pound (GBP) Latest: GBP/USD Continues to Test Upside pre-FOMC

British Pound (GBP) Latest: GBP/USD Continues to Test Upside pre-FOMC

What's on this page

GBP price, news and analysis:

  • GBP/USD is again challenging resistance at the 200-day moving average despite being technically overbought.
  • If a break higher follows Wednesday’s monetary policy announcement by the Federal Reserve, a climb to 1.30 and then the March highs could follow.

GBP/USD strength persists

GBP/USD is continuing to press ahead, attempting to break decisively above the 200-day moving average that stands currently at 1.2733. In early London business Wednesday it has already hit a high at 1.2786 and if it stays around current levels by the close of play it could head to 1.30 or even the March 9 high at 1.32.

There is, however, one warning sign: the 14-day relative strength index, around 75, is now well above the 70 level that suggests the pair has been overbought.

GBP/USD Price Chart, Daily Timeframe (March 3 – June 10, 2020)

Latest GBP/USD price chart.

Chart by IG (You can click on it for a larger image)

GBP/USD Bullish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -9% -1% -5%
Weekly -11% 0% -6%
Learn how to use sentiment in your trading strategy
Get My Guide

FOMC meeting in focus

The Pound’s underlying strength is also clear from a move lower in EUR/GBP Wednesday. However, the future of USD, EUR and GBP will likely be determined by the monetary policy announcement by the US rate-setting Federal Open Market Committee, due at 1800 GMT.

The Fed is not expected to move its Fed funds target rate so attention will focus instead on its economic projections and any hints that policy could be tightened following last week’s unexpected news of a fall in the US jobless rate in May.

There have also been reports that the FOMC is thinking about the introduction of “yield curve control”, a program designed to ensure that some long-term interest rates do not rise sharply.

What trading style best suits your personality? You can find out here.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Martin Essex, MSTA
Trading Forex News: The Strategy
Get My Guide

We look at currencies regularly in the DailyFX Trading Global Markets Decoded podcasts that you can find here on Apple or wherever you go for your podcasts

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.