GBP/USD little changed after Fed stays put

• GBP/USD oscillates in a narrow range after FOMC statement
• Fed leaves rates unchanged and expects inflation to move uup this year

The dollar remained little changed across the board, weakening slightly against the pound, following Fed’s decision to keep rates unchanged.

Fed leaves rates unchanged, as expected

As expected the FOMC voted for keeping the target range for the federal funds rate at 1-1/4 to 1‑1/2 percent. The central bank expects inflation to move up this year and to stabilize around the 2% objective over the medium term. “The Committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate,” the statement reads.

Price action remained subdued in the FX space following the release. GBP/USD barely reacted, advancing a few pips toward 1.4210 before sliding back to the 1.4165 area. At time of writing, GBP/USD is trading at 1.4170, still 0.18% above its opening price.

GBP/USD technical levels

As for technical levels, next supports are seen at 1.4120 (intraday low), 1.4084 (200-hour SMA) and 1.4065 (10-day SMA). meanwhile, resistances could be found at 1.4232 (intraday high), 1.4285 (Jan 26 high) and 1.4344 (Jan 25 high).