GBP/USD Price Forecast: Bullish potential intact as traders await Fed/BoE policy meetings
The GBP/USD pair extends the previous day’s retracement slide from the 1.3575 area, or over a one-week top, and attracts some follow-through selling on Tuesday. The downward trajectory drags spot prices to the 1.3500 psychological mark during the early European session and is sponsored by a goodish pickup in the US Dollar (USD) demand. The downside, however, seems limited as traders keenly await this week’s key central bank events before positioning for the next leg of a directional move.
The US Federal Reserve (Fed) will announce its decision at the end of a two-day meeting on Wednesday, which will be followed by the Bank of England (BoE) policy update on Thursday. Investors will look for more cues about the future policy path amid worries that the war-driven surge in energy prices will rekindle inflationary pressures and negatively impact economic activity. This, in turn, would provide some meaningful impetus to the GBP/USD pair and determine the near-term trajectory. Read more…
Pound Sterling trades lower as focus shifts to Fed-BoE policy
The Pound Sterling (GBP) is down against its major currency peers, trading 0.2% lower around 1.3500 against the US Dollar (USD), during the European trading session on Tuesday. The British currency faces selling pressure amid uncertainty surrounding the Bank of England’s (BoE) monetary policy announcement on Thursday.
The BoE is widely expected to hold interest rates steady at 3.75%, with an 8-1 majority, as the United Kingdom (UK) core Consumer Price Index (CPI) growth cooled down in March. However, BoE officials will still likely warn of upside inflation risks as global energy prices remain elevated amid the long closure of the Strait of Hormuz. Read more…
Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-usd-bullish-potential-intact-202604281104
