The price movement on the chart of the GBP/USD currency pair still remains hovering in the 1.27000 zone until the opening of trading earlier this week.
Yesterday, the price was pushed lower reaching around 1.26630 as the US dollar managed to show strengthening.
However, the price bounced back above 1.27000 at the close of the New York session and the slow price movement above that level continued trading in the Asian session this morning (Tuesday).
Investors still need to be cautious for trading after this due to the high-impact data that will be published until the end of the week.
In addition to the FOMC meeting, the Bank of England (BOE) will also hold their policy meeting on Thursday.
Both the central bank BOE and the Federal Reserve (Fed) are expected to maintain their respective interest rates, but what will trigger a significant reaction in the market is the follow-up speech by the Chairman and Governor to indicate the direction of their monetary policy.
Drastic price movements can reach up to a range of 100 to 200 pips in a short period of time.
For the expectation of a price drop below the 1.27000 level, the expectation for the nearest target level is at the 1.26000 support.
The level that was reached in mid-January is likely to be tested again if a bearish pattern is displayed.
On the other hand, if the price jumps high from the 1.27000 level, the 1.28000 zone becomes the target after the price has also managed to overcome the highs in the trading in recent weeks.
Next, only then will the target move higher at 1.29000 with a stronger bullish movement pattern successfully shown.
