#GBPUSD @ 1.21438 extends its downside around 1.2140 ahead of key events.

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• GBP/USD extends its downside around 1.2140 ahead of key events.

The pair currently trades last at 1.21438.

The previous day high was 1.2201 while the previous day low was 1.212. The daily 38.2% Fib levels comes at 1.2151, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.217, expected to provide resistance.

The GBP/USD pair remains on the defensive during the early Asian session on Wednesday. The major pair faces rejection near the 1.2200 mark. Market players await the highly anticipated Federal Open Market Committee (FOMC) policy meeting on Wednesday ahead of the Bank of England (BoE) on Thursday. These events might trigger the volatility in the market. GBP/USD currently trades near 1.2139, losing 0.11% on the day.

The two-day FOMC policy meeting begins today and will end in late Wednesday. The markets anticipate the FOMC to hold the interest rate unchanged at its November meeting. Traders will keep an eye on the FOMC Chair Powell’s press conference for fresh impetus. If the FOMC delivers a hawkish message, the US Dollar (USD) might attract some buyers and weigh on the GBP/USD pair.

On the other hand, the Bank of England (BoE) is expected to keep interest rates steady at 5.25% at its November meeting on Thursday amid growing worries about a recession in the UK economy. Following the meeting, BoE governor Andrew Bailey might offer some hints about the latest forecasts for the UK economy and the future of monetary policy.

The weaker UK data and stubborn inflation exert pressure on the British Pound (GBP) and act as a headwind for the GBP/USD pair. Additionally, the elevated geopolitical risks in the Middle East might boost safe-haven flows and benefit the Greenback.

Investors will take cues from the US ADP employment report, JOLTS Job Openings, and the ISM Manufacturing PMI ahead of the FOMC meeting on Wednesday. On Thursday, the BoE rate decision and BoE Governor Bailey’s speech will be the highlights. The US employment data, including Nonfarm Payrolls and Average Hourly Earnings for October, will be released on Friday.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2144 at the time of writing. Pair opened at 1.2153 and is trading with a change of -0.07 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.2183, 50 SMA 1.2329, 100 SMA @ 1.2562 and 200 SMA @ 1.2438.

The previous day high was 1.2201 while the previous day low was 1.212. The daily 38.2% Fib levels comes at 1.2151, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.217, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2115, 1.2077, 1.2034
• Pivot resistance is noted at 1.2196, 1.2239, 1.2277

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