Pound Sterling Price News and Forecast: GBP/USD may appreciate toward the two-month high

FXStreet Team FXStreet

GBP/USD Price Forecast: Hovers around nine-day EMA near 1.3500

GBP/USD inches higher after registering little losses in the previous day, trading around 1.3520 during the Asian hours on Wednesday. The technical analysis of the daily chart indicates a potential for a bearish reversal as the pair is hovering around the lower boundary of the ascending channel pattern.

However, the GBP/USD pair maintains a modest bullish bias as it holds above the nine-day Exponential Moving Average (EMA) and the 50-day EMA. The clustering of these averages below the spot suggests a supportive backdrop after the recent advance, while the 14-day Relative Strength Index around 56 hints at positive but not overextended momentum, leaving room for further gains while the pair remains under nearby resistance. Read more...

GBP/USD consolidates near 1.35 ahead of the Fed and the BoE

GBP/USD eased 0.12% on Tuesday, closing near 1.3520 and continuing the broader consolidation around 1.3500 that has held through recent sessions. The pair traded in a roughly 115-pip range between 1.3465 and 1.3580, with an early European push to the session high faded through the New York session before bargain hunters lifted price off the lows. A cluster of small-bodied candles formed about 1.3520 into the close, suggesting positioning is squared away ahead of the Bank of England (BoE) and the Federal Reserve (Fed).

On the Pound Sterling side, Thursday's BoE policy decision at 11:00 UTC is the dominant catalyst, with the Bank Rate expected to be held at 3.75% on a Monetary Policy Committee (MPC) vote forecast at 8-1-0 (unchanged-hike-cut) versus the prior unanimous 9-0-0 hold. The accompanying Monetary Policy Report and Governor Bailey's press conference at 11:30 UTC will be parsed for any shift in tone given the inflation pressure flowing through from energy prices since the Iran conflict escalated. Friday's scheduled speech from MPC member Pill at 11:15 UTC offers a further BoE event risk into the weekend. Read more...

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