• GBP/USD bears are meeting demand at a 61.8% ratio support area.
• Bulls are in control front side of bullish trend into he Fed.

Sterling moved out of consolidation in the later part of the New York morning and is finding demand at a daily support area on the charts. However, at 1.1900, the pair is remaining precariously close to recent trend lows ahead of Wednesday's expected Fed 25bp hike.

A hawkish outcome could see GBP/USD back below Monday's low at 1.2799 as traders price a less-hawkish 25bp hike at the Bank of England's meeting on August 3.

The following illustrates the market structure on the daily chart and prospects of a move higher on a dovish outcome at the Fed:

GBP/USD daily chart

GBP/USD is still on the front side of the bullish trend and above last month's highs. Considering the long squeeze into the breakout traders of early July, at the 61.8% ratio, there is a case for the upside. However, it depends on the Fed.