On the daily chart below, we can see that after failing to break the support level at 1.1839, the price rallied towards the trendline and then after a breakout extended towards the 1.2265 resistance. The moving averages crossed to the upside signalling a possible change in trend.

The buyers for now are in control as the risk sentiment remains tentatively positive trading into the FOMC decision tomorrow. All the emergency measures taken by the central banks calmed the markets for now, but sentiment can turn on a dime lately, so keep following ForexLive in case we get a breaking news that can move the market greatly.

GBP/USD

On the 4 hour chart below, we can see that the sellers are leaning on the 1.2265 resistance as the price is reacting to it. We may see a pullback after such a strong rally in the past days as also signalled by the divergence between the price and the MACD. The sellers will of course target the breakout of the trendline to extend the selloff towards the 1.1839 support.

The buyers, on the other hand, will lean on the trendline, the red long period moving average and a Fibonacci retracement level to target the break above the 1.2265 resistance and ultimately look forward to the 1.2444 high.

GBP/USD

On the 1 hour chart below, we can see that we have another minor trendline supporting the uptrend. A break below this trendline will give the sellers control and enough conviction to run towards the major trendline.

The buyers will try to defend it and if we get a break above the high at 1.2285, then they will remain in control and keep charging towards new higher highs unless a negative catalyst hits the newswires.

GBP/USD