GBP/USD offered near confluence of Fibo, pivot, psychological number

A recovery attempt in Asia proved to be short lived as bears offered the GBP/USD pair around 1.30, a psychological number which marks the confluence of daily pivot, 76.4% of 1.2865-1.3445).

Focus on BOJ ahead of Fed

The immediate focus is on the Bank of Japan (BOJ) policy review. Speculation is rife that Kuroda is likely to deliver something big as experts believe ‘longer we wait, higher the chances of a shock/surprise. If indeed Kuroda delivers a shock, then the resulting action in the GBP/JPY could move Cable as well.

Later in the day, traders would take note of the Fed’s interest rate dot chart and act accordingly.

GBP/USD Technical Levels

Acceptance above 1.3002 (76.4% of 1.2865-1.3445) would open doors for hourly 50-MA level of 1.3021. A violation there could yield 1.31 (hourly 100-MA). On the other hand, a breakdown of 1.2947 (previous day’s low) would expose support at 1.29 handle and 1.2883 (pivot S2).