The Great Britain Pound (GBP) extended upside movement against the US Dollar (USD) on Thursday, increasing the price of GBPUSD to more than 1.5670 following the release of the Federal Open Market Committee (FOMC) minutes. The technical bias remains bullish due to a Higher High and Higher Low in the recent wave on daily chart.
As of this writing, the pair is being traded around 1.5679. A hurdle may be noted near 1.5751, the 23.6% fib level ahead of 1.5800, the psychological number and then 1.5928, the swing high of the last major upside rally as demonstrated in the following daily chart.
On the downside, the pair is expected to find a support around 1.5641, the 38.2% fib level ahead of 1.5552, the 50% fib level. The technical bias will remain bullish as long as the 1.5423 support area is intact which is the swing low of the last major dip on daily chart.
The Federal Reserve yesterday released the minutes from the recent FOMC meeting. the Minutes indicate that most members saw room for some additional progress in reducing labor market slack, although several viewed current labor market conditions as at or very close to those consistent with maximum employment. The Minutes also showed that one Fed member was willing to raise rates at this meeting, though the FOMC agreed that the conditions for a rate hike had not yet been met.
Considering the overall technical and fundamental outlook, selling the pair could be a good strategy if we get a bearish reversal candle on four-hour timeframe around the current levels because the upside wave on daily chart has been completed and now it’s time for some correction.