Price movement on the chart of the GBP/USD currency pair is seen moving horizontally in the 100 pips zone throughout the week with the reaction to the FOMC meeting early this morning observed.
The Federal Reserve (Fed) kept interest rates at 5.50% but Chairman Jerome Powell's speech did not signal a rate hike at the December meeting.
Powell repeated the same statement as the previous meeting which emphasized that the existing strict policy will be maintained.
The US dollar weakened after the meeting gave room for the Pound to rise into the Asian session this morning.
However, investors will be wary of price reactions in the New York session with focus on the Bank of England (BOE) policy meeting today (Thursday).
Expected interest rates will be maintained by the central bank at 5.25% at this meeting.
Looking at the movement of the GBP/USD chart, the price several times tested the support level at 1.21000 before the surge occurred after the FOMC.
The rise in price continued into the Asian session this morning, seeing the price heading towards the resistance level of 1.22000 again.
A rise above the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart signals a bullish move for the price.
The 1.22000 level is observed whether it is able to be penetrated by the price before displaying a bullish movement which then targets the next resistance zone at 1.23000.
However, if there is a further decline, the price can drop back below the MA50 support level before retesting yesterday's 1.21000 level.
If finally the price breaks lower, the price zone that will be the next focus is around 1.20500.
