The GBP USD exchange rate is 0.277% higher on the day. 1 GBP = 1.6298 USD. "The British Pound pared it's advance to 1.6314 to hold within the previous day’s range, and the GBP USD may trend sideways throughout the remainder of the day as the Bank of England is scheduled to release its policy statement on Wednesday at 8:30 GMT," says a note from DailyFx. The BoE minutes are likely to show another 6-3 split within the MPC as the central bank maintains its current policy in April, but a growing shift within the committee could spark a bullish reaction in the British Pound as investors expect to see higher borrowing costs in the U.K. However, if the central bank maintains a neutral outlook for monetary policy, the GBP USD is likely to face range-bound price action over the near-term, and the exchange rate may work its way back towards 1.6400 as price action climbs back above the 23.6% Fibonacci retracement from the 2009 low to high around 1.6200-1.6220. Looking at the US Dollar, we see price action was largely mixed on Tuesday, but the greenback may face selling pressures going into the North American trade as equity futures foreshadow a higher open of the U.S. market. The rebound in risk appetite is likely to dampen demands for the greenback, but we may see the U.S. dollar hold its ground against its major counterparts as U.S. policy makers try to restore investor confidence. Treasury Secretary Timothy Geithner said that he is ‘reasonably confident’ that Congress will address the budget deficit following the warning shorts from Standard and Poor’s, and urged the government to make the necessary reforms to balance the budget deficitduring an interview with Bloomberg TV.

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