GBP/USD attempts tepid-bounce from 5-week lows, Fed eyed

The GBP/USD pair is seen trimming losses, after having slumped to fresh five-week lows below the mid-point of 1.29 handle in late-Asia.

GBP/USD trades below all major DMAs

Currently, GBP/USD drops -0.11% to 1.2975, retreating slightly from multi-week troughs struck at 1.2946 following BOJ’s announcement. The major slid sharply after the US dollar picked-up significant strength in tandem with the USD/JPY pair, following new policy framework introduced by the BOJ, while leaving rates unchanged today. Meanwhile, the USD index trades +0.23% higher at 96.19, easing-off six-week tops printed at 96.29 levels.

Next in focus remains the BOJ presser, with Kuroda likely to bring in additional volatility, while the Fed policy decision takes center-stage today amid limited macro data from the UK docket.

GBP/USD Levels to consider            

The pair has an immediate resistance at 1.3001 (5-DMA), above which 1.3089/93 (Aug 17 & Sept 19 high) would be tested. On the flip side, support is seen at 1.2900 (round figure) below that at 1.2872/63 (Aug 16 & 15 low).