The Pound rises back above 1.3100 as the US Dollar loses steam following a dovish FOMC statement. Yesterday, the Fed's FOMC statement showed that the Fed is more dovish than what market participants had expected. The Fed made it clear that they will be “patient” not only with raising rates, but also with trimming down its balance sheet. The Fed based its rhetoric on the muted inflationary pressures and elevated risks surrounding global growth. For today, traders will continue to digest yesterday's dovish news from the US' side while also monitoring the release of any major Brexit-related news.
The Pound bounces off the 1.3048 support and ranges around the 13-period moving average. The pair can go anywhere from here depending on the break of either the 1.3230 resistance or the 1.3048 support. The break above the 1.3230 resistance will pave the way for a rise towards 1.3300, while the break below the 1.3048 support will pave the way for a drop towards 1.2920. Note that the pair's bias is bullish since prices are trending above all the three major moving averages.
Support: 1.3048 / 1.2920
Resistance: 1.3230 / 1.3300