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GBP/USD extends Friday’s drop in early Europe

FXStreet (Mumbai) - The European desks offered GBP in early Europe, marking a continuation of Friday’s weakness and leading to a drop in the GBP/USD pair to a low of 1.5140.

Focus on Fed meeting

The closed meeting of the Board of Governors of the Federal Reserve System is scheduled today. Markets believe the Fed will move the discount rate today, however, if it does, then that would be a pre-commitment to interest rate hike in December.

The UK economic calendar is empty today, hence the USD could be bid ahead of the official disclosure of the Fed’s closed meeting later today.

GBP/USD Technical Levels

At 1.5150, the immediate support is seen at 1.5087 (61.8% of Apr-Jun rally), followed by a support at 1.5027 (Nov 6 low). On the other hand, resistance is seen at 1.51 and 1.5248 (50% of Apr-Jun rally), above which the pair could rise to 1.5338 (200-DMA).

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