GBP/USD Retreats Further Ahead of FOMC

GBP/USD continued its corrective slide from several-month highs, and reached its daily low, with a target of 1.3700. After optimism about the launch of Covid 19 vaccines and hopes for a global economic recovery faded, along with doubts about the timing of the US stimulus plan, all this affected the markets.

This is in addition to the escalating tensions between the United States and China in the South China Sea that affected global sentiment and this was evident in the sharp decline in stock markets, which pushed investors towards the US dollar ahead of the FOMC meeting scheduled for later on Wednesday.

It is widely expected that the Federal Reserve will leave monetary policy unchanged and thus the focus will be on the policy statement and comments Jerome Powell of the Fed at the post-meeting press conference. Investors may take advantage of more signals about US stimulus and COVID-19 developments.