FxWirePro: GBP/USD gains some upside momentum but still bearish

• GBP/USD strengthened on Wednesday  as  dollar weakened as markets interpreted comments made by Federal Reserve Chair Jerome Powell on Tuesday as dovish.

• Fed Chair Jerome Powell on Tuesday left the door open to additional rate cuts and signaled that the end of the central bank’s long-running balance sheet reduction campaign may be approaching.

•  Powell’s comments helped revive risk sentiment, benefiting high-beta currencies such as the pound.

•Meanwhilw,Britain’s Finance Minister Rachel Reeves said she is considering both tax increases and spending cuts in her November 26 budget, confirming widespread expectations in line with her pledges to balance the country’s books.

• Money markets are placing an 87% chance of no change at the BoE's next meeting on November 6.

•   Immediate resistance is located at 1.3378( Daily high), any close above will push the pair towards 1.3419(50%fib)

•  Strong support is seen at 1.3300 (38.2%fib) and break below could take the pair towards 1.3241(Lower BB).

  Recommendation: Good to sell around 1.3400, with stop loss of 1.3500 and target price of 1.3300