GBPUSD extended higher and above a target level but reverses back down ahead of the FOMC

The GBPUSD did make a run to the upside in the early US session and in the process extended above a swing area between 1.3221 and 1.3230. I talked about that area in the earlier video starting at the 7-minute mark.

The move above that level extended the price of the GBPUSD toward the high price reached at the end of August near 1.32659, but could not sustain momentum and has rotated back lower.

Going forward, getting above 1.32659 price, would take the price of the GBPUSD to the highest level going back to March 2022 and have traders targeting that level at 1.32977 (call it 1.3300). Move above that and the door opens even more for more upside momentum.

On the downside, the rising 100-hour moving average comes in at 1.31667. That level along with the 100-bar moving average on the 4-hour chart at 1.3145, and the 200-hour moving average at 1.3125 would be the progression needed to shift the bias more to the downside. Move below those levels and a move toward 1.3051 cannot be ruled out.

Buyers made a play but had second thoughts on the move ahead of the key Fed decision. The buyers remain in more control, but the Fed decision is a key risk event. A move below the cluster of MAs would hurt the bullish technical bias.

This article was written by Greg Michalowski at www.forexlive.com.