GBP/USD Price Analysis: Rises back above the 1.2200 mark, supported by 50-DMA

• GBP/USD bull run pauses ahead of FOMC meeting.
• Odds are rising for BoE’s potential pause in a rate hike.
• UK CPI data are likely to be overshadowed by the Fed decision.  

GBP/USD's bull run stalls at a long-ended descending trendline originating from the 1.3768 mark on a daily timeframe. This bullish surge is driven by broad-based US Dollar weakness amid falling US Treasury yields. Additionally, increasing expectations for the Bank of England (BoE) to pause at their upcoming meeting also support the bullish momentum for Cable.

With the bullish bias intact, a convincing break above the trendline could propel the pair toward the twice-tested 2023 high. Downside declines are likely to be limited by the 50-Day Moving Average (DMA), situated below the previous day's low at around the 1.2146 level. A convincing break below this level would likely lead the pair to confront the 21-DMA at the 1.2016 level.

The last line of support is observed at 1.1800, beyond which there is a vast uncharted territory.

The Relative Strength Index (RSI) signals a higher high providing a support case for further bullish momentum.

Market participants are now focused on the UK Consumer Price Index (CPI) data released on Wednesday and the highly anticipated Federal Reserve (Fed) policy decision. The significance of the upcoming Fed meeting is likely to overshadow the UK's CPI data.

All key levels will be monitored closely during the Fed event.

GBP/USD: Daily chart