27 January 2022, GBP/USD
GBPUSD trading plan:
Traders widely expect the Fed to raise its benchmark overnight interest rate from the current near-zero level at the March 15-16 meeting. Federal funds futures have priced in another three rate hikes in 2022 after the March liftoff. FOMC members also agreed at this week's meeting on a set of principles for "significantly reducing" the size of the Fed's massive asset holdings. Officials said they will shrink holdings "primarily" by limiting how much of the principal from maturing bonds it would reinvest each month. That plan would start after the liftoff in interest rates, the Fed said, without yet setting a specific date, pace or final size.
Investment idea: sell 1.3444 and take profit 1.3393.