GBP/USD holding in a 20 pip range as Asia digests Russian and FOMC news

• GBP/USD bulls moved in on FOMC minutes, extending earlier gains on BoE sentiment. 
• Russian headlines continue to keep traders on edge of their seats. 

GBP/USD is holding in near 1.3580 and in a tight Asian range of 20 pips as traders sit on their hands weighing the Federal Open Market Committee minutes vs Russian headlines. The US dollar was pressured overnight on the minutes despite concerns over an imminent threat of a Russian invasion of Ukraine.  

The convergence of central banks was a theme in New York when the minutes did not underpin the market sentiment of a 50bps rate hike as soon as March. With that being said, the minutes were written of a meeting that took place between Fed board members before the hot US inflation report and stellar jobs prints.

Nevertheless, the pound was already higher across the board on Wednesday after domestic data showed inflation in Britain at a nearly 30-year high. The Bank of England is expected to hike interest rates again. The BoE has hiked twice since December. Rates have risen to 0.5% from 0.1%. Another hike to 0.75% or 1% on March 17 after the BoE's next meeting is expected.

The data showed that the Consumer Price Index on an annual basis climbed to 5.5% in January. This was the highest since March 1992, and above expectations from economists for it to hold at December's 5.4%.

As for the Russian headlines, alarmingly, the US State Department said that more Russian forces, not fewer, are on the Ukraine border and they're moving concerningly into fighting positions. 

GBP/USD technical analysis

Meanwhile, the daily outlook sees the price stuck between a wide 1.3520 and 1.3650 range: