GBP/USD deflates from highs, back below 1.42

The sterling is now shedding part of its earlier gains vs. the dollar, prompting GBP/USD to return to sub-1.4200 levels.

GBP/USD now looks to FOMC

Spot has faded the earlier spike to the vicinity of 1.4220, boosted after UK’s labour market figures have come in on the strong side during the month of May.

The pair is thus looking to extend the rebound from yesterday’s drop below the 1.4100 mark, although GBP is poised to remain under pressure in light of the upcoming EU-UK Referendum on June 23.

Later in the NA session, the FOMC meeting is expected to keep the monetary stance on hold once again, with market participants this time focusing on the ‘dots-plot’ and the Committee’s statement.

GBP/USD levels to consider

As of writing the pair is advancing 0.57% at 1.4194 and a break above 1.4353 (100-day sma) would open the door to 1.4412 (55-day sma) and finally 1.4475 (20-day sma). On the other hand, the immediate support aligns at 1.4091 (low Jun.14) followed by 1.4088 (low Apr.14) and then 1.4004 (low Apr.6).