GBP/USD backs away from the 1.4200 level as dollar holds firmer

It is a bit of a familiar resistance point for cable as it runs into daily resistance at 1.4200, which capped the highs seen in late February.

There was an attempt by buyers to hold a break above that yesterday but ultimately, the daily close still fell short and that keeps the figure level as a key one to watch.

For now, the more defensive tone in equities is helping to feed into some dollar strength but cable's upside has not been derailed whatsoever yet.

The key hourly moving averages are seen @ 1.4096-16 and unless sellers can press towards that region and break below that, the upside run is still intact for now.

The risk for the dollar and cable's movement today will rest on the Fed minutes later. There will be a lot of eyes as to what the Fed deems as ‘transitory' when it comes to inflation and how many of them shares Clarida's view when interpreting data if anything.

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