The Federal Reserve is expected to maintain a hawkish tone during its first meeting of 2022 and confirm that interest rates will start to rise in March.
The British pound eased below $1.35 during the fourth week of January, as investors digested PMI data showing Britain's private sector growth slowed to an 11-month low and as demand for the dollar was supported by expectations the Federal Reserve will be announcing this week a March interest-rate hike to combat inflation.
Elsewhere, investors see a high chance that the Bank of England will raise rates again next week, after data showed last week the UK consumer inflation rose more than expected to 5.4% in December, its highest since March 1992.
The GBPUSD market is short term bearish and yesterday’s break leaves trade poised for follow through selloffs, suggesting a wash towards the 1.3338 low. Only a close over 1.3566 stops the downturn and signals for a short term retracement phase.
Resistance 2 1.3565
Resistance 1 1.3523
Support 1 1.3480
Support 2 1.3440
Resistance 2 1.3565
Resistance 1 1.3523
Support 1 1.3480
Support 2 1.3440