GBP/USD picks up bids to refresh intraday high around 1.1500, extending the previous day’s rebound from a one-week low during Wednesday’s Asian session.

The cable pair’s latest strength appears to take clues from the broad US dollar weakness ahead of the all-important Federal Open Market Committee (FOMC) meeting.

Also favoring the quote buyers are the recent upbeat signals from the options market, as portrayed by the one-month risk reversal (RR).

That said, the gauge of calls to puts printed the first positive daily closing in four while printing a 0.025 figure by the end of Tuesday’s North American session, per Reuters data on the options market. It’s worth noting that the one-month RR for the GBP/USD printed four consecutive weekly positive numbers in the last, despite flashing the -0.145 figures at the latest.

Given the recently firmer options market bias joining the broad US dollar weakness ahead of the key Fed decision, the GBP/USD prices may witness further upside but the bulls need to remain cautious.

Also read: GBP/USD Price Analysis: Retreats towards 1.1450 inside weekly bearish channel