So, the Federal Reserve left the interest rate unchanged. Amid all speculation in this regard, a brief pullback should have taken place in the forex market, and the greenback should have strengthened. However, it did not happen. Instead, the US dollar showed steady growth. All in all, the regulator adopted a more aggressive stance on monetary policy. First of all, it decided to speed up the tapering of the QE program. "Beginning in February, the Committee will increase its holdings of Treasury securities by at least $20 billion per month and of agency mortgage-backed securities by at least $10 billion per month," the FOMC statement said. In other words, the pace of tapering was increased twice. The regulator also hinted that the first rate hike could take place already in March. Inflation used to be the main reason for taking measures. Yesterday, the central bank also mentioned the jobs market, saying it had stabilized enough. If the state of the jobs market continues to improve further, overheating risks will grow. If so, the consequences will be even more devastating than from rising inflation. So the Federal Reserve is clearly concerned about this issue, which means it will not wait and postpone rate hikes until markets are ready for them. These markets now have only a month and a half. Consequently, the US dollar will continue strengthening.

The pound/dollar pair resumed its downward slide after rebounding slightly. As a result, it updated the swing low as of January 25, indicating the likelihood of a stronger dollar.

The Relative Strength Index (RSI) is moving below the 30/50 range, signaling mounting bearish interest.

The Alligator indicator shows the crossover of moving averages (MA) on the 4-hour chart, indicating the end of the bullish cycle. The indicator confirms a reversal signal on the 4-hour chart.

According to the daily chart, the price has retraced down by 61% after the end of the bullish cycle.

Outlook:

Traders expect the bearish trend to continue. Consolidation below 1.3400 on the daily chart could lead to an increase in short positions. If so, the price may head towards 1.3320 and 1.3200.

Speaking of complex indicator analysis, technical indicators are signaling to sell the instrument in the short and intermediate terms as well as intraday due to the bearish market.