The GBPUSD pair is trading above 1.2530, extending gains.
Fed Chair Powell gave a clear sign to an inevitable reduction of the Federal funds rate. The USD responded by losing value against the rest of the major currencies bloc.
Near-term bias stays neutral currently and the failure for the Sterling to significantly recover against the USD may spell further inconvenience for the pair on the broader picture – once Brexit begins to return into focus. There is still the possibility for pair to increase slightly to test the 200-hour Moving Average @ 1.2555 and for buyers to establish some upside momentum.
For buyers, the risk to any trade would be the pair dropping back under the 100-hour Moving Average @1.2504 and the 1.2500 handle.
BoE Governor Carney speaks later.