GBP/USD Outlook (20th June 2019)

• FOMC
  
• GBP/USD moving towards key level
  

Price Movement
Since yesterday, GBP/USD moved up by around 140pips.

Trend
Recently, GBP/USD is trending upwards.

Important Issue
This morning, the U.S. FOMC kept the target range for interest rate unchanged at 2.25% to 2.5%.

In the FOMC Statement, the Committee finds that inflation nearing 2% is still a likely outcome, although they also mention that “uncertainties about this outlook have increased”.

From the FOMC Economic Projections, the Federal Reserve does not expect any rate cuts in 2019 as the central bank’s median target for the interest rate remains at 2.4% for 2019, unchanged from its March projection.
However, the June’s projections projected a lower median target of 2.1% for 2020, hinting at possible rate cut(s) in 2020.

Technical
Yesterday, GBP/USD broke the resistance level of 1.26000.
Currently, it is moving towards the 1.27 key level.

Price Levels
Current Price: 1.26938
Next Resistance: 1.27400
Next Support: 1.26000