GBP/USD was guided primarily by the 55-hour SMA during the first part of Wednesday which allowed to reach a three-week resistance of 1.4080.
Bullish strength was added late in the evening when the Fed increased its benchmark rate to 1.75%, but did lower the number of projected hikes to three this year. This caused a significant weakening of the US Dollar across all major currencies and thus paved the way for the Sterling to test the weekly R3 at 1.4170.
Technical indicators are starting to retrace from their high positions. This points to possible depreciation during the following hours, at least.
Volatility is likely to increase mid-session when the BOE is to release its Monetary Policy Summary at 1200GMT. Downside potential today is the 1.40 area, while strong resistance is set at 1.4250.
