Pound Sterling Price News and Forecast: GBP/USD meets with some supply on Wednesday

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GBP/USD Price Analysis: Two-month-old ascending trend-line holds the key ahead of FOMC

The GBP/USD pair struggles to capitalize on the previous day’s goodish recovery move from the vicinity of over a two-week low and attracts some sellers near the 1.2900 mark during the Asian session on Wednesday. Spot prices currently trade around the 1.2880-1.2875 region, down nearly 0.20% for the day, though the downside seems cushioned as traders keenly await the outcome of the highly-anticipated two-day FOMC policy meeting.

The Federal Reserve (Fed) is scheduled to announce its decision later this Wednesday and is widely anticipated to hike interest rates by 25 bps. Investors, however, remain sceptic if the US central bank will commit to a more dovish stance or stick to its forecast for a 50 bps rate hike by the end of this year. This, along with Tuesday’s upbeat Conference Board’s Consumer Confidence Index, assists the US Dollar (USD) to hold steady just below a two-week high. Apart from this, reduced bets for more aggressive policy tightening by the Bank of England (BoE) continue to undermine the British Pound (GBP) and exert some pressure on the GBP/USD pair. Read more…

GBP/USD rebound prods 1.2900 as IMF defends UK growth forecasts, hawkish BoE bets increase, Fed eyed

GBP/USD bulls take a breather around 1.2900 during early Wednesday morning in Asia, reversing from a two-month low, as well as snapping a seven-day-long losing streak, amid the broad US Dollar pullback. Apart from that, the International Monetary Fund’s (IMF) economic projections for the UK and Reuters’ poll about the Bank of England’s (BoE) next move also propel the Cable pair.

That said, the risk-on mood allowed the US Dollar to retreat from a multi-day high. Also weighing on the greenback, as well as fueling the Pound Sterling price, could be the market’s preparations for today’s Federal Open Market Committee (FOMC) monetary policy meeting announcements. Read more…