GBP/USD may have completed 5th wave higher Wednesday at 1.6483; 1st pullback target 1.6089

FXstreet.com (Barcelona) - The GBP/USD finished well of the session highs after the US FOMC news was released. That intraday reversal seems to have signaled a wave 5 peak with a corrective move lower to take place next.

GBP/USD traders to focus mainly on US data and British retail data Thursday

Even though the magnitude of the Fed’s tapering was less than gargantuan, the fact that any tapering was announced signaled a change in policy by the FOMC. That change may take some time to fully be priced into the various USD currency crosses – including the GBP/USD.

Thursday’s economic data points due out that may have an impact on the GBP/USD include:

• British Retail Sales
• US Weekly Jobless Claims
• US Conference Board Leading Indicators
• US Existing Home Sales
• US Philly Fed Manufacturing Survey
• US 7-Year Note Auction

Technical outlook for GBP/USD

Technicians say that GBP/USD at the very least put in a short-term top and that a corrective move lower to 1.6089 (for starters) should take place. The obvious resistance for GBP/USD comes in at Wednesday’s high of 1.6483. Initial support comes in at Tuesday’s intraday low of 1.6216 but the more meaningful targets start at 1.6089 and continue all the way down to 1.5456.