GBP/USD Signal - Fed Rates on Hold - 20 Sep 2016

The GBP/USD pair has been confined in tight ranges with the market currently pricing in a little more than 10 per cent chance that the U.S. Federal Reserve will raise rates at its meeting tomorrow. The central bank is widely expected to remain on hold by the market and we tend to agree with the consensus estimates.

This is why today we would be buying daily calls on the GBP/USD pair. The recent moves in the British pound have weakened it somewhat, with the 1.3000 level turning into key support. After tight trading yesterday we are seeing prospects for a move higher from 1.3050 today. This is the level where we will be buying daily calls for today's expiration.