GBP/USD Heading Up Or Down? BOE & FED Meeting Be Decisive!

<p>A bearish pattern was shown on the chart of the GBP/USD currency pair yesterday, but was not very significant and was still mixed in determining a clearer direction.</p><p><br /></p><p>The US dollar did not show a significant reaction yesterday despite the economic data of the United States (US) published with encouraging readings, namely the consumer confidence survey and JOTLS total job offer data.</p><p><br /></p><p>Drastic price movements will be expected when interest rates are announced at the FOMC meeting early Thursday morning, with a follow-up speech by Federal Reserve (Fed) Chairman Jerome Powell will be given full attention by the market.</p><p><br /></p><p>Meanwhile, the Pound is awaiting the results of the Bank of England (BOE) meeting at 8pm tomorrow with the expectation that the interest rate will still be maintained at 5.25%.</p><p><br /></p><p>Examining the GBP/USD chart, the price is still seen to be moving closer to the 1.27000 zone since last week and continued until this week.</p><p><br /></p><p>There was a decline yesterday reaching around 1.26400, surpassing last week's lows, but the price bounced back to close the trade at the end of the New York session at 1.27000.</p><p><br /></p><p>The price is seen not to pass the important zone and slightly decreased in the Asian trading session this morning (Wednesday) after the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart was also not successfully passed.</p><p><br /></p><p>Therefore, it is still seen that the price movement pattern is more likely to move in a bearish trend again, but any surprises can happen ahead of the policy meeting for the two central banks.</p><p><br /></p><p><br /></p><p>If a price increase occurs, the target is still directed towards the 1.26000 support level tested in mid-January trading.</p><p><br /></p><p>Breaking lower will show a more clear bearish trend and the price will also record a recent 7-week low.</p><p><br /></p><p>However, if the price rises beyond the 1.27000 level, this will be an early signal for a bullish movement to support the price out of the previous horizontal zone.</p><p><br /></p><p>The continued rise is expected to lead to the resistance zone at 1.28000 after the last time the price tested that zone was at the end of last December.</p><p><br /></p><p>It is not impossible for a higher increase to be able to be exhibited following the impact of the market reaction to the central bank policy meeting this week.</p>