VOT Research Desk
On Wednesday, the GBP/USD pair rises for the fifth day in a row. During the first half of the European session, it returns closer to the 1.2400 level.
However, spot prices are still below a five-month high reached on Tuesday as investors wait for the FOMC policy decision before making further wagers.
The US Dollar is currently hovering around its lowest point since late June due to speculations expecting a relatively minor 50 basis point Fed rate hike.
A bullish risk tone also weakens the safe-haven dollar, which is seen as providing some support to the GBP/USD pair.
Meanwhile, the softer-than-expected UK consumer inflation data issued earlier this Wednesday don’t seem to have much of an impact on the intraday gain.
On the other hand, the daily swing low, which is currently protecting the immediate downside ahead of the 1.2300 level, is at the 1.2340 range.
Near the 1.2250-1.2245 range, any additional decrease might continue to draw some buyers. As a result, the downside should be restrained close to the weekly low, or around the round number 1.2200.
The positive perspective will be invalidated and the bias will move in favor of negative traders if the aforementioned support levels are not maintained.
