GBP/USD below 1.3000 ahead of the Fed

GBP/USD remain in a small range during the last hours, between 1.2980 and 1.2960. The pair awaits the Fed’s decision moving sideways, under the important 1.30 handle and modestly lower for the day.

Before the event, the US dollar is losing momentum in the market while the pound still remains among the worst performers.

Levels to watch

The FOMC decision (the statement will be release at 18:00 GMT) is likely to trigger volatility across the board moving the GBP/USD.  An outcome from the Fed meeting that boosts the US dollar could push cable toward August lows at 1.2860 and if the decline continues, 2016 lows at 1.2790 would be exposed.

On the opposite direction, above 1.3000 resistance levels could be seen at 1.3050 followed by 1.3090 (weekly high) and then 1.3160 (Sep 13 low).