Nick Nasad
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GBP/USD - Is Post FOMC Retrace Complete?

I'm curious to see what will happen here with the GBP/USD as it was put under pressure first by a weak retail sales report the previous European session, and also by a general retracement in most USD crosses after the FOMC decision Wednesday.

  • The pair tests a 50% fib retracement from the week's lows.
  • It is also testing the 55-EMA in the hourly timeframe.
  • The pair has not yet tested the important psychological support level of 1.60, or the horizontal resistance at 1.5980 that had been established prior to the FOMC decision, which both may act as support still.

I have been a fan of the UK macro picture, so the retail sales report certainly proved to be a bummer from that standpoint, but I believe that the removal of any short term prospect of the BOE doing more QE should continue to bolster it against the USD.

To see what the GBP/USD has done since I wrote this, click on the chart below:

- Nick