- GBP / USD Forecast is a bear in the middle of Hawkish Fed.
- Geopolitical concerns continue to be more difficult on the pound.
- Markets are now waiting for a decision and a statement of Boe politics.
The GBP / USD forecast was slightly lightened after she stayed for the third consecutive session. The couple trades around 1,3415, at the time of writing.
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The British pound is struggling because the demand for the American dollar rises due to a safe passage of safe from Iranian-Israel. On the other hand, FOMC meeting surprised the markets with Hawkish. Now, market participants are waiting for a meeting and a statement on the English bank’s policy, as it reached later.
On Wednesday, GBP / USD pair found mild support after the CPI print in the UK came better than expected. However, inflation still ticks. That is why the function cannot be used on the go. Last week, BDP and employment data continue to add pressure to the English bank to keep policy alleviation.
At the front of the geopolitics, the war of Iran-Israel entered the seventh day. According to Bloomberg’s report, American officials are preparing for an attack on Iran in the coming days. Another report from Wall Street Journal also claimed that the American president approved attacks in Iran on Tuesday, but he wanted to see if Iran would leave his nuclear program.
Moreover, Greenback found the added support of the Fed Chalse Povel comments. He signaled that inflation was still somehow above their targets and could be increased in the near future due to Trump tariffs. Powell also supported the currency program, leaving them well-set. He reiterated that Fed will hold rates and the decrease will primarily depend on inflation and data on work.
Fomc retained rates unchanged at 4.25% – 4.50%, as storied broadly. The Central Bank still expects that from 50 BPS is cut by the end of 2025.
GBP / USD Technical forecast: Pause Sellers at 1,3400
GBP / USD 4-hour chart shows mild support about 1,3400. However, previously corrupt support in 1,3418 acts as resistance. If the price has about liquid resistance, it can fall to the following support in 1,3340. RSI is close to a resale area that indicates a couple can see some purchases.
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However, the rest of the price below the 20-period SMA shows that the bears are now controlled. Markets can be consolidated around current levels before finding any directional bias.
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