Pound Sterling Price News and Forecast: BoE announcement has come and gone without too much alarm

GBP/USD Price Forecast: Awaits BoE decision before the next leg up amid dovish Fed

The GBP/USD pair attracts some buyers near the 1.3585 region on Thursday, and for now, it seems to have stalled the post-FOMC retracement slide from its highest level since early July, which it touched the previous day. The US Federal Reserve (Fed), as was widely anticipated, lowered borrowing costs for the first time since December 2024, by 25 basis points, putting the overnight funds rate in a range between 4.00%-4.25%. Moreover, the central bank indicated the need for two more interest rate cuts by the end of this year amid worries about a softening US labor market. The initial market reaction, however, turned out to be short-lived following Fed Chair Jerome Powell's remarks during the post-meeting press conference.

Powell told reporters that risks to inflation are tilted to the upside, and the move to lower interest rates was a risk management cut. Powell added that he doesn't feel the need to move quickly on rates and that the Fed is in a meeting-by-meeting situation regarding the outlook for interest rates. The US Dollar (USD) witnessed a dramatic intraday turnaround from its lowest level since February 2022, touched in reaction to the FOMC rate decision, and exerted pressure on the GBP/USD pair during the latter part of the US trading session on Wednesday. Read more...

GBP/USD retreats after spike – BoE steady, Fed cuts

GBP/USD experienced a sharp two-month spike, reaching 1.3725 during Wednesday’s session, before swiftly retracing its gains. This volatility comes amid diverging central bank actions, with the BoE widely expected to maintain its key interest rate today, following the Federal Reserve’s decision to cut borrowing costs for the first time since December.

The pair briefly surged above the upper Bollinger Band but failed to secure a daily close above it, indicating potential exhaustion in bullish momentum. The immediate support level at 1.3585 is now in focus. A break below this could expose the mid-Bollinger Band at 1.3525, followed by the 50-day simple moving average (SMA) at 1.3465, both of which may act as buffers against further downside. Read more...