The pair continues trading in a narrow sideways channel near the level of 1.3100 amid lack of important macroeconomic news form the UK and prior to the Fed Interest Rate Decision that is due today. According to forecasts, the rate will remain unchanged.
At the same time, the majority of market participants expect a rate cut in the UK in the nearest future while the probability of tightening in the US before the end of the year significantly increased, which is pressuring the pair.
Support and resistance
In the medium-term, the price is expected to fall to the level of 1.3000, where it will reverse and return to the level of 1.3250.
On the 4-hour chart, the price is trading near the lower MA of while bands are narrowing.
Support levels: 1.3050, 1.3000, 1.2860.
Resistance levels: 1.3150, 1.3250, 1.3310, 1.3400, 1.3480.
Pending buy order can be placed at the level of 1.3000 with the target at 1.3250 and stop-loss at 1.2900.
Short positions can be opened from the level of 1.2940 with the target at 1.2860 and stop-loss at 1.3000.