Pound Sterling Price News and Forecast: GBP/USD declines on market caution due to the Middle East tension

FXStreet Team FXStreet

GBP/USD edges lower to near 1.2680 ahead of US Fed interest rate decision

GBP/USD extends its losses for the second consecutive session on Wednesday, inching lower to near 1.2680 during the Asian session. The risk aversion sentiment is driving Investors towards the US Dollar (USD), which in turn, undermines the GBP/USD pair. US President Joe Biden has communicated that the United States will respond in a tiered approach to a specific situation following the deadly drone attack on US troops near the Jordan-Syria border.

The US Dollar Index (DXY) snaps a three-day losing streak, improving to near 103.60 despite the decline in the US Treasury yields. The 2-year and 10-year yields on US bond notes stand at 4.31% and 4.02%, respectively, by the press time. Moreover, The Federal Open Market Committee (FOMC) is widely expected to maintain its interest rate at 5.5% in its Wednesday meeting. Read more...

GBP/USD holds below the 1.2700 mark, investors await Fed rate decision

The GBP/USD pair holds below the 1.2700 mark during the early Asian session on Wednesday. Later on Wednesday, UK Nationwide Housing Prices for January will be due ahead of the Federal Open Market Committee (FOMC) monetary policy meeting. The major currently trades around 1.2695, unchanged for the day.

The FOMC is widely anticipated to keep interest rates unchanged in the range of 5.25–5.50% for the fourth straight time. At the Fed's December meeting, Fed officials expected three rate cuts in 2024. However, the meeting minutes revealed that the future of monetary policy remains uncertain. According to CME Group’s FedWatch tool, traders have priced in 50% odds of rate cuts at the next meeting in March. Read more...

GBP/USD

Overview
Today last price	1.2679
Today Daily Change	-0.0017
Today Daily Change %	-0.13
Today daily open	1.2696

Trends
Daily SMA20	1.2707
Daily SMA50	1.2674
Daily SMA100	1.2466
Daily SMA200	1.2561

Levels
Previous Daily High	1.2721
Previous Daily Low	1.264
Previous Weekly High	1.2775
Previous Weekly Low	1.2649
Previous Monthly High	1.2828
Previous Monthly Low	1.2501
Daily Fibonacci 38.2%	1.2671
Daily Fibonacci 61.8%	1.269
Daily Pivot Point S1	1.265
Daily Pivot Point S2	1.2605
Daily Pivot Point S3	1.2569
Daily Pivot Point R1	1.2731
Daily Pivot Point R2	1.2767
Daily Pivot Point R3	1.2812

Author

FXStreet Team

FXStreet

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