GBP/USD trades little changed on the upside ahead of Fed decision

• The ADP report came in better-than-expected at 204K vs. 200K forecast in April. 
• There is no significant reaction on cable as traders are waiting for the FOMC statement at 18:00 GMT.

The GBP/USD is trading at around 1.3644 up 0.21% on Wednesday as the US ADP (Automatic Data Processing) report came in at 204K in April, beating analysts expectations of a 200K increase. The ADP report is the forerunner of the more significant Non-Farm Payroll indicator released this Friday. A positive number on the ADP is generally seen as a positive for USD but traders are focusing on the FOMC statement which is coming later on Wednesday.

Meanwhile, the Cable continues to be under heavy pressure as the US dollar trend is relentless. Market participants have been eager to buy the greenback as the Federal Reserve is expected to maintain its hawkish stance on monetary normalization. The Federal Open Market Committee (FOMC) will release its monetary policy statement at 18:00 GMT on Wednesday which will be scrutinized by investors worldwide. It is widely expected that the Fed will keep rates steady this month and will indicate the next rate hike for June of this year. However, headwinds might come from the trade dispute between the US and China. 

On the GBP side of the story, investors have been selling the British pound as recent key macroeconomic data pushed the odds of a Bank of England rate hike very low.

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.