The currency pair rallied in the second part of the day and now is located at 1.2408. The Dollar Index's sell-off forced the USD to lose significant ground versus its rivals. The GBP/USD pair dropped right after the UK inflation data publication as the CPI reported only a 6.7% growth compared to the 7.0% growth estimated.
The price edged higher ahead of the FOMC, as the FED is expected to keep the Federal Funds Rate at 5.50%. Tomorrow, the BOE is expected to deliver a 25 bps hike. So, the fundamentals should bring high action.
GBP/USD downside seems over
Technically, the GBP/USD pair jumped above the downtrend line, and it challenged the 1.2410 static resistance. It remains to see how it will react after the FOMC Press Conference. Stabilizing above the broken downtrend line may announce a potential upside reversal.
Still, yesterday's high of 1.2424 stands as a key upside obstacle. The upside pressure is high after failing to reach the weekly S1 of 1.2320.
GBP/USD outlook
Jumping, closing, and stabilizing above the 1.2424 may announce further growth and could be seen as a buying opportunity.
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