The US dollar was seen moving weak after the outcome of the FOMC meeting which saw the Federal Reserve (Fed) meet expectations of raising interest rates by 75 basis points.
The surge in US inflation in May to 8.6% has urged the Federal Reserve (Fed) to make the biggest interest rate hike since 1994, but investors' expectations to see further strengthening of the US dollar have faltered.
The depreciation of the US dollar has given room for other major currencies in the market to rebound including the Pound while investors are now awaiting the outcome of the meeting of the central bank of England (BOE).
In the European session soon will expect for the Bank of England (BOE) will announce an interest rate increase of 25 basis points.
If the interest rate hike is in line with market forecasts, it is expected that the Pound will continue to strengthen against the US dollar which moved weaker after the results of the FOMC meeting earlier this morning.
On the price chart of the GBP/USD pair, the price is seen to have made a rebound of around 200 pips in yesterday's trading session (Wednesday) after a decline of 3 consecutive days.
Prices were seen to have made gains in the Asian session yesterday before continuing gains in the European session continuing until the end of the New York session.
After a decline of 270 pips occurred on Tuesday it is seen that the price has made a rebound yesterday and managed to break the Moving Average 50 (MA50) on the 1 hour time frame for a bullish trend change signal.
Continuing trading in the Asian session this morning (Thursday), the price is seen flat around 1.21600 after successfully passing the price resistance of 1.2100 in the previous session and it is likely that the price will retest the SBR zone (support become resistance) 1.22800.
On the other hand, if the price decline occurs again, the 1.21000 level is expected to be the initial focus to test the price before the MA50 barrier level is also tested to give an indication of further price movements.
The price decline that successfully continues beyond that level will then lead to a lower target level at 1.20000 after the change in the price trend is more clearly assessed by investors and is likely to once again reach this week's low of 1.19400.
The outcome of the BOE meeting in the European session will soon be the driver of price movement towards the end of this week.
