FXstreet.com (Barcelona) - After falling around 115 pips during the European session from intra-day high at 1.6320, the GBP/USD has found support at 1.6205/10 key level in the early American morning with the pair bouncing to trade close to 1.6240. Currently the pair is trading around 1.6230/40.

Valeria Bednarik, FXstreet.com collaborator, comments: Pound holds against major rivals, ranging lower against dollar. Having reached an intraday low around 1.6200, pair is slightly up correcting the not so extreme oversold conditions, yet far under 20 SMA with a nice bearish slope. Bigger time frames show pair strong bearish momentum that should keep the upside capped during next hours, around 1.6330, yesterday's high zone.

According to Andrew Wilkinson, analyst at Interactive Brokers, the Dollar rallies to greet FOMC meeting: The Federal Reserve policy board begins its two-day meet today and the dollar is significantly stronger overnight. And while there are no bets being made along the lines that it will deliver any change in the language in Wednesday's policy statement, it does feel as though the day has passed when money could be made by betting on an unchanged outcome. It seems that the risk for the dollar is presently to the upside.

Wilkinson concludes: The pound made good gains against the euro and yen after data showed a pick-up in domestic inflationary pressures in November. Against the dollar the pound slipped and currently buys $1.6228. The November consumer price index rose a larger than expected 0.3% on the month and 1.9% year-over-year with investors taking the perspective that the data might force hands at the Bank of England sooner rather than later when it comes to remedial monetary policy action.