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GBP/USD consolidation FOMC focus

The GBP/USD  is seen in a consolidation phase, after having witnessed sharp gains the day earlier amid broad based US dollar weakness and growing anti-Brexit support.

Overnight, the dollar remained broadly lower against the other major currencies on Tuesday, as the release of disappointing U.S. economic reports dampened demand for the greenback and as investors remained cautious ahead of the Federal Reserve’s policy statement on Wednesday.

The GBP/USD pair trades with an air of caution as the traders remain unnerved ahead of the UK prelim GDP report due to be published in the European session. Markets are expecting the GDP growth rate to have slow to 0.4% in Q1 2016, down from 0.6% seen in the last quarter of 2015, on the back of global headwinds and looming Brexit concerns.

FOMC in focus.

The main market moving event for the major is expected to be the FOMC decision, following the conclusion of the two-day policy meeting that started on Tuesday.

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