GBP/USD retaking intraday lows ahead of FOMC

• GBP/USD bear trend is intact as the pair is testing intraday lows.
• Demand for the US Dollar remains extremely strong ahead of the Fed's monetary policy statement at 18:00 GMT.

The GBP/USD is trading at around 1.3600 down 0.09% on Wednesday ahead of the Federal Reserve's monetary policy statement at 18:00 GMT on Wednesday.

The GBP/USD bears keep pushing the pair lower towards the 1.3580  level current low of the day as the greenback is seeing extraordinary high demand with market participants anticipating the Federal Reserve Bank to keep its hawkish rhetoric and indicate a rate hike in June. The US Dollar Index which measures the greenback relative to a basket of currencies is trading at 4-month highs and is now en route towards the 93.00 psychological level.

On the other hand, traders have been keen to get rid of the British pound as recent key macroeconomic data kept disappointing. Investors which were anticipating a rate hike in May, a little more than two weeks ago, have now basically abandoned the idea as the chances of the Bank of England indeed pulling the trigger have become extremely slim. Although Thursday will see the UK Services PMI, it is unlikely that even a stellar reading will turn around the negative sentiment on GBP.

GBP/USD 4-hour chart 

The trend is bearish and support is priced in at 1.3580 cyclical low and at 1.3457 swing low while resistance is seen at the 1.3700 and 1.3800 figure.