GBP/USD approaches 1.3000 ahead of Fed

The Sterling has trimmed earlier losses vs. the greenback today, with GBP/USD now nearing the psychological handle at 1.3000

GBP/USD now looks to the Fed

Spot is clinging to its daily gains for the time being, as market participants seem to have digested the BoJ recent announcements while shifting their focus on the upcoming FOMC meeting.

In the meantime, the pair keeps the trade in 5-week troughs, below the 1.3000 level in response to a re-emergence of the demand for the US dollar and weak GBP fundamentals.

GBP/USD levels to consider

As of writing the pair is advancing 0.02% at 1.2992 facing the next up barrier at 1.3150 (55-day sma) followed by 1.3194 (20-day sma) and finally 1.3447 (high Sep.6). On the other hand, a break below 1.2945 (low Sep.20) would open the door to 1.2863 (low Aug.15) and then 1.2796 (2016 low Jul.6).