GBP/USD testing Tuesday’s low, awaits Fed action

FXStreet (Mumbai) - GBP/USD extends its choppy-trend as we progress towards the American opening bells, with markets waiting for the conclusion of the Fed 2-day policy meeting for further action.

GBP/USD back below 1.5300

The GBP/USD pair trades -0.09% lower at fresh session lows of 1.5286, moving away from 1.53 handle. Having failed to surpass 5-DMA located at 1.5315 levels on several occasions, the major slipped back below 1.53 barrier and now extends to the downside, completely shrugging-off broad based US dollar weakness.

A sudden selling-wave hit the cable as markets reposition ahead of the crucial Fed decision, which may create huge volatility. Meanwhile, the major will continue to track the broader sentiment ahead of the US good trade balance data with eyes set on the FOMC statement due to be published later in the New York session.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5350 (200-DMA) above which gains could be extended to 1.5400/04 (round number + 1h 200-SMA). On the flip side, support is seen at 1.5250/32 (psychological levels+ daily S2) below which it could extend losses to 1.5200 (round number).

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