Wednesday, April 06, 2016

GBP/USD Continues Falling while Waiting for the FOMC Meeting Minutes Announcement

The minutes of the FOMC meeting should be announced later today. Usually that announcement is a high impact event and it has a pretty strong influence on the market. Despite that expectation, the market did not wait for it while consolidating, which is what tends to happen before such events. Instead many pairs continued moving as usual.

GBP/USD broke below the trend line (the red line) and started moving to the downside towards 1.40.

It is quite possible that the pair will stop at that level while waiting for the news to come out. However, I think that it’s becoming more and more probable for the pair to continue falling and we could see it reach 1.38 or even lower than that.