GBP Rebounds from 0.786 Resistance Amid Fed Hawkish Expectations

The British Pound (GBP) has rebounded from its 0.786 resistance level in the GBP/USD pair, according to Arc Cycle Analysis on the 2h chart.

This rebound confirms a bearish reaction and opens up the possibility of continued movement toward the next support level at the 0.618 target arc.

The price has been driven down by growing acceptance that the US Federal Reserve (Fed) will maintain its hawkish stance amid oil-driven inflation risks and elevated US bond yields, which is boosting the US Dollar (USD).