The GBP/USD pairing is trading at $1.6866, up 0.25%, after the US revealed first-quarter gross domestic product of 0.1% when consensus was for growth of 1.2%. The pound managed to hold on to the $1.68 level even though the UK growth figure also came in slightly under expectations, but it is now at new multi-year highs on the back of softer-than-expected US growth figures.
At 7pm (London time) the Federal Reserve will make its interest rate decision and release a statement. The market is not expecting a change in interest rate but traders will be focused on the statement in any case, as recently Fed chairmen Janet Yellen stated that the US central bank will support the economy as long as support is required. If tonight’s statement is on the dovish side, we could move towards Chris Beauchamp’s target of $1.69.