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GBP/USD holds near 1.3300 as traders eye Fed and BoE decisions

CME FedWatch pegs the odds of the Fed keeping rates unchanged at 69.5%, while GBP/USD remains capped below its 20-day EMA near 1.3353.

Reported · Written up by our desk · Major Pairs

The British pound held marginal gains versus the US dollar around 1.3300 in European trading on Wednesday, as the US dollar weakened ahead of a Federal Reserve policy decision scheduled for 18:00 GMT, according to FXStreet.

The outlet noted that the US Dollar Index, a measure against six major currencies, traded near 101.30 and investors were positioned for cues on rates, inflation, and the economic outlook. CME FedWatch indicated a 69.5% chance the Fed would leave interest rates unchanged in the 3.5% to 3.75% range, and markets will also watch the policy statement and remarks from Fed Chair Kevin Warsh.

Attention then shifts to the Bank of England on Thursday, where FXStreet said expectations are for rates to stay at 3.75% with a 7 to 2 vote. It also highlighted that GBP/USD’s near-term technical picture remains bearish, trading under the 20-day EMA near 1.3353 and below a broken downward resistance trend line around 1.3489.

FXStreet added that the pair’s Relative Strength Index stays near 44, which it said points to subdued upside momentum, and cited Scotiabank’s view that the RSI could push further toward bearish territory. The analysis pointed to a local trading range between a late-June low in the mid-1.31s and a mid-July high in the mid-1.35s, with near-term support around 1.3250 and resistance near 1.3350.

Latest closeGBP/USD 1.329 ▼0.5%|Dollar index 101.39 ▼0.1%

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