GBP/USD remains around 1.2900 as Fed leaves rates unchanged

The US dollar moves sideways after the Fed’s decision to leave monetary policy unchanged. The GBP/USD pair fell to 1.2899 and then bounced to 1.2925. It was moving around the price it had before the report. 

As expected, the US central bank, left interest rates unchanged on Wednesday, after a 2-day policy meeting, at the range 0.75% - 1.00%. In the statement, the FOMC said that the slowdown during the first quarter is likely to be transitory. They repeated that if the economy evolves as expected, it would warrant gradual rate hikes.  There won’t be a press conference or forecast updates next.  

The greenback is looking for a direction in the market after the decision. It was moving between the limits of the price range of the American session without significant breakouts. 

Technical levels 

To the upside, resistance levels might be located at 1.2935 (May 1 high), 1.2945/50 (daily high), 1.2965 (Apr 28 high) and 1.3000 (psychological). On the flip side, support could be seen at 1.2885 (daily low), 1.2865 (May 2 low) and 1.2845 (Apr 25 high).

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