GBP/USD Drops to Touch $1.2100 Before Heading Up to $1.2200

<p>&nbsp;Price movement on the chart of the GBP/USD currency pair is seen moving horizontally in the 100 pips zone throughout the week with the reaction to the FOMC meeting early this morning observed.</p><p><br /></p><p>The Federal Reserve (Fed) kept interest rates at 5.50% but Chairman Jerome Powell's speech did not signal a rate hike at the December meeting.</p><p><br /></p><p>Powell repeated the same statement as the previous meeting which emphasized that the existing strict policy will be maintained.</p><p><br /></p><p>The US dollar weakened after the meeting gave room for the Pound to rise into the Asian session this morning.</p><p><br /></p><p>However, investors will be wary of price reactions in the New York session with focus on the Bank of England (BOE) policy meeting today (Thursday).</p><p><br /></p><p>Expected interest rates will be maintained by the central bank at 5.25% at this meeting.</p><p><br /></p><p>Looking at the movement of the GBP/USD chart, the price several times tested the support level at 1.21000 before the surge occurred after the FOMC.</p><p><br /></p><p><br /></p><p>The rise in price continued into the Asian session this morning, seeing the price heading towards the resistance level of 1.22000 again.</p><p><br /></p><p>A rise above the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart signals a bullish move for the price.</p><p><br /></p><p>The 1.22000 level is observed whether it is able to be penetrated by the price before displaying a bullish movement which then targets the next resistance zone at 1.23000.</p><p><br /></p><p>However, if there is a further decline, the price can drop back below the MA50 support level before retesting yesterday's 1.21000 level.</p><p><br /></p><p>If finally the price breaks lower, the price zone that will be the next focus is around 1.20500.</p>