The pound has found some support near the 1.18 level however with FOMC due later today. Resistance above could be tested.

Technicals

The GBP/USD pair found support at the 1.18 region, but has since moved higher over the last few days towards the long-term resistance at 1.2130. FOMC is due to increase interest rates later today at 7 pm (UK time) with Jerome Powell due to speak at 7.30 pm. A rise is expected, which could help strengthen the US dollar and as a result, will put negative pressure on this pair. If the pound can break out above the resistance, then a follow-through (red line) towards 1.2500 could be possible. If the tone remains hawkish and more interest rates happen in the future, then the pound could quickly find its way back to the multiyear lows at 1.18 and below. RSI reads 51, suggesting a neutral bais.