GBP/USD fails to hold above 1.3000, back to square one

The pound attempted to stage a comeback against the dollar on Wednesday and managed to briefly rise back above the 1.3000 level, but sellers quickly stepped in.

GBP/USD revisited monthly lows during the European session but the 1.2945 proved to be a tough support. From there the pair moved higher, but the upside was capped by 1.3011. At time of writing, Cable was trading ay 1.2985, virtually unchanged on the day.

Investors seem reluctant to take big positions ahead of the FOMC statement at 18:00 GMT today. Expectations of a rate hike are from slim to nonexistent, but Fed’s wording will be closely scrutinized.

GBP/USD technical levels

As for technical levels, immediate supports are seen at 1.2945 (Sep 20 & 21 low), 1.2900 (psychological level), 1.2864 (Aug 15 low) and 1.2796 (Jul 6 low). On the other hand, next resistances could be found at 1.3064 (Sep 20 high), 1.3090 (Sep 19 high) and 1.3156 (50-day SMA).