GBP/USD price action has remained in a range of around 100 pips for the past few sessions with the focus on the FOMC meeting early this morning.
The Federal Reserve (Fed) kept interest rates unchanged as expected with a dovish follow-up statement delivered by Fed Chairman Jerome Powell.
Although employment and the economy appear to be stable, inflation has increased and policymakers have lowered their economic forecasts due to uncertainty caused by the policies of the Donald Trump administration.
Market attention now shifts to the outcome of the Bank of England (BOE) meeting tonight with expectations that interest rates will be maintained.
The GBP/USD chart is still seen testing the 1.30000 zone as a key resistance since the opening of trading earlier this week.
In the Asian session on Wednesday, the price fell from the 1.30000 level to around 1.296000 before rebounding after the FOMC meeting decision.
The price that returned to the 1.30000 level was also seen to have risen above the Moving Average 50 (MA50) line on the 1-hour time frame on the chart, which again triggered a bullish signal.
However, resuming trading in the Asian session this morning (Thursday), the price leveled at the 1.30000 resistance, indicating that the price is still struggling to overcome this important zone.
Expectations for a higher increase that will continue will record a new 4-month high.
The target is for the price to head towards the 1.310000 focus zone, which was last touched in October last year.
However, if the price plunges from the 1.30000 zone, the current support level of 1.29000 is likely to be approached again.
The price reaction will be observed with a trend change signal that will push the price down to a lower level.
