FXStreet (Córdoba) – GBP/USD rose earlier on Friday to 1.5230 hitting the highest level in four weeks. Afterwards it pulled back modestly finding support at 1.5200. During the last hours it has been trading between 1.5200 and 1.5225, 115 pips above the level it had a week ago.
A weak US dollar gave support to the cable, that is about to post the second weekly gain in a row as it continues to recover after falling last week to 1.4890, the lowest since April.
GBP/USD recovering but risks ahead and still on bearish channel
Despite rising or the second week in a row the pair continues to face downside pressure on a wider perspective as it moves within a bearish channel. The upper limit of the channel is located at 1.5330/60, where also the 20-week moving average stands.
Next week, the FOMC meeting is likely to trigger volatility across all the forex market. If it pushes GBP/USD to rise above 1.5350, the pound could gain support for a medium-term recovery. If the FED’s decision and its statement boosts the US dollar, a significant close below 1.4950 could open the doors to more losses.
(Market News Provided by FXstreet)