GBP/USD fails to hold above 1.4200

• GBP/USD retreats from daily highs ahead of FOMC statement
• US dollar enjoys some demand during the New York session

Cable failed to hold up above 1.4200 after hitting 5-day highs, and pulled back slightly as the dollar strengthened somewhat ahead of the Federal Reserve policy statement.

GBP/USD retreated from a peak of 1.4232, last seen Jan 26, and dropped below 1.4200 to currently trade at the 1.4185 area, still 0.29% above its opening price. 

The Federal Reserve concludes its 2-day policy meeting today, and no changes on monetary policy are expected. Next rate hike is seen in March although some participants do expect the Fed to take a more hawkish tone today.

GBP/USD technical levels

As for technical levels, short-term supports for GBP/USD are seen at 1.4120 (intraday low), 1.4084 (200-hour SMA) and 1.4065 (10-day SMA). On the flip side, resistances could be found at 1.4232 (intraday high), 1.4285 (Jan 26 high) and 1.4344 (Jan 25 high).