For today, Pound traders will shift their focus away from Brexit negotiations towards the FOMC meeting in the U.S. The pair will be mainly driven by greenback fundamentals and the Federal Reserve's outlook. The market is already pricing in a high chance for a rate hike this month, however, market participants are eager to hear what Fed Powell has to say about the future of his panel's interest rate plan given the escalation in the trade war between the U.S and China and its effect on the U.S economy.
The direction of the pair will be determined based on Fed Powell's tone during his FOMC speech. A bullish tone from Powell will increase demand for the greenback and lead the pair towards breaking below the 1.31513 level paving the way for a drop towards 1.30535. A bearish tone will weaken the greenback and help the Pound continue its rally by breaking above 1.32017 and exposing the 1.32694 level.
Support: 1.31513 1.30535
Resistance: 1.32017 1.32694