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GBP/USD Ready to Shift, Awaiting FOMC

GBP/USD has been consolidating in October, but the bearish bias remained. In the 4H chart, we can see that price held below the 200-period SMA even though it has been trading up and down the 100-, and 50-period SMAs. The RSI does not show any directional momentum. It is basically neutral-bearish, with the prevailing bearish trend being the main reason for the bearish bias. 

GBP/USD 4H Chart 10/29(click to enlarge)

As we approach a key FOMC decision, GBP/USD has been edging higher, after bouncing off 1.60. This shows that GBP/USD has some bullish correction intent, and a break above 1.6185 should be a signal that it has turned the October consolidation into a price bottom.

However, if price falls below 1.6075, it would fall below a speedline and the cluster of SMAs in the 4H chart. This would open up the 1.60 level in the near-term, with risk of falling back toward the 1.5875 low on the year.