GBP/USD dips back below 1.3100

GBP/USD lost steam and retreated from recent highs as the dollar managed to take back some of of the sharp losses incurred over the last hours.

GBP/USD peaked at 1.3120 during the American session but turned lower and dipped back below the 1.31 mark. It was last trading at the 1.3070 area, still up 0.33% on the day and over 100 pips above its Wednesday’s low.

The US dollar faced heavy losses over the last 24 hours after the Fed decided to keep rates unchanged. Even though the decision was expected the dovish tone discouraged those still beating for a 2016 rate hike.

GBP/USD technical levels

As for technical levels, immediate resistances could be found at 1.3156 (50-day SMA), 1.3189 (21-day SMA) and 1.3246 (Sep 16 high). On the other hand, supports are seen at 1.3024 (Sep 22 low), 1.2945 (Sep 20 & 21 low) and 1.2900 (psychological level).