GBP/USD technical analysis: Bulls eyeing 100-hour SMA/38.2% Fibo. near 1.2600 handle ahead of FOMC

• The GBP/USD pair traded with a mild positive bias for the second consecutive session on Wednesday and built on the overnight rebound from the key 1.2500 psychological mark.
• The pair did face some resistance near the 23.6% Fibo. retracement level of the 1.2759-1.2506 downfall but managed to clear the hurdle after mostly in line UK consumer inflation.

The pair is now moved closer to 100-hour SMA, which is closely followed by 38.2% Fibo. level near the 1.2600 round figure mark. The latter marks a previous strong horizontal support breakpoint and should now act as a key pivotal point for short-term traders.

With technical indicators on the 1-hourly chart gaining positive traction, sustained move beyond the mentioned handle might prompt some near-term short-covering move and lift the pair further towards 50% Fibo. level, near the 1.2630 region.

However, persistent Brexit uncertainties should keep a lid on any strong follow-through recovery move ahead of the next big event risk – the latest FOMC monetary policy update, scheduled to be announced later during the US trading session.

On the flip side, the 23.6% Fibo. resistance breakpoint, near the 1.2565 region now seems to protect the immediate downside, which if broken might negate prospects for any near-term recovery and turn the pair to resume its well-established near-term bearish trajectory.

GBP/USD 1-hourly chart