GBPUSD before the Federal Reserve Average decision, but there is still a reflection on the cards

summary:
• GBPUSD has increased by 0.8 percent in the last five sessions. Is the dollar about to turn the tide? We discuss the decision before expectations and post -feeding.

GBPUSD fell in the second consecutive round on Wednesday, as traders put their bets on the dollar before the interest rate decision at the Federal Reserve. Members of the Federal Open Market Committee (FOMC) is expected to vote to a large extent to keep prices unchanged by 4.50 %, although recent pressure from President Donald Trump has decreased borrowing costs.

The cable has been ascending in recent days, as it got +0.8 % in the last five sessions. However, he saved the dollar against the pound this week, and pushed it to rise returns on US Treasury bonds. However, merchants are optimistic about GBPUSD ups after the upcoming speeches of the UK Prime Minister Kiir Starmer and Treasury Adviser Rachel Reeves this week.

Starmer was optimistic that trade relations between the United Kingdom and the United States were about to improve at a time when there was a widespread tension over President Trump’s speech. On the other hand, Reeves said on Wednesday that the government was confident in the UK’s economy and will remove suffocating and unexpected regulations.

The news preaches well in the pound sterling, which may be increasingly pressure if the Bank of England cut interest rates in the United Kingdom in early February as expected widely. Under the line, GBPUSD will be affected by the US PCDs (PCE) expected on Friday.

GBPUSD prediction

The momentum on GBPUSD is preferred to stay on the downward path below the axis mark at 1.2428. Immediate support is likely to be at 1.2392. However, the strongest declining momentum will extend the decrease in the second support test at 1.2358.

Instead, the transition above 1.2428 will enhance buyers of control. This momentum is likely to push a GBPUSD trading pair to the first resistance at 1.2456. The breaking of this level will nullify the narration of the downside and potentially test 1.2482.