GBP/USD flat-line at 1.3130 ahead of Fed announcement

Following a swift recovery from session low and a subsequent retracement back above 1.3100 handle, the GBP/USD pair is attempting to build on to its recovery gains and is currently trading around 1.3130-40 region, absolutely flat from yesterday's closing level. 

During European trading session the pair shrugged off better-than-expected UK GDP print for second quarter of 2016 and dropped to session low near 1.3070 region. 

The pair managed to recover after disappointing US durable goods orders data and gained further traction after the release of lower-than-expected pending home sales data for the month of June. 

Heading into the key event risk, Fed monetary policy statement, traders seemed reluctant to carry forward their bets, which seem to restrict movement for the major. 

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Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "the 4 hours chart shows that the price is still unable to advance above its 20 SMA, while the Momentum indicator remains flat around its mid-line, and the RSI indicator turned lower around 41, keeping the risk towards the downside despite the lack of directional momentum. A break through 1.3060 should lead to a test of the 1.3000 critical figure, whilst an extension below this last can see the decline accelerating towards the 1.2940/50 region."

"Above 1.3120 on the other hand, the pair can recover up to 1.3170/80, while above this last, the rally can extend up to 1.3230. Still, advances will be probably taken as selling opportunities rather than a signal of further gains."