GBP/USD hits fresh three-month highs near 1.2150, looks at the 200-SMA

• US Dollar remains under pressure after FOMC minutes.
• Limited trading activity as Wall Street remains close.
• GBP/USD heads for the highest close in three months.

The GBP/USD rose further during the American session and hit at 1.2152, the highest level since mid-August. It is up rising for the third consecutive day. While the Pound holds to recent gains, the US Dollar is under pressure.

Cable has risen more than 300 pips since Tuesday as the UK leaves behind the chaotic September and October. Price has approached the 200-day Simple Moving Average that stands at 1.2180. The last time the GBP/USD closed above was back in September 2021.

The short-term bias favors the upside although some overbought readings are seen. The 1.2030 zone has become the initial support followed by 1.1960. A sharp correction, could reach the 1.1700 without changing the upside bias.

The US Dollar continues to slide following the FOMC minutes released on Wednesday. Expectations that the US central bank might slow the pace of rate hikes after four 75 basis points hikes weighed on the Greenback and boosted Treasuries. The Fed will likely continue to raise rates as inflation remains elevated and far from the target.

On Thursday, price action is limited on Thanksgiving Day. Wall Street is closed and Friday will see a shortened session.

Technical levels