GBP consolidates as focus shifts to Fed, BoE monetary policy meetings

GBP/USD Forecast: Pound Sterling could struggle to find direction before Fed and BoE

GBP/USD continues to move up and down in a narrow band at around 1.2700 early Monday after closing the previous week virtually unchanged. The near-term technical outlook fails to provide a directional clue but the Federal Reserve’s and the Bank of England’s (BoE) policy announcements later this week could help the pair break out of its range.

The cautious market mood at the beginning of the week helps the US Dollar (USD) stay resilient against its rivals and makes it difficult for GBP/USD to gather bullish momentum. Investors grow increasingly worried about the potential negative economic impact of escalating geopolitical tensions in the Middle East. Read more…

Pound Sterling consolidates as focus shifts to Fed, BoE monetary policy meetings

The Pound Sterling (GBP) remains lackluster in Monday’s European session as investors appear to have sidelined ahead of the interest rate announcements by the Bank of England (BoE) and the Federal Reserve (Fed). The GBP/USD pair trades in a narrow range near 1.2700 as investors are anticipated to make their bets after this week’s policy announcements. 

Trades see the BoE maintaining interest rates unchanged at 5.25% for the fourth time in a row as core inflation in the United Kingdom more than doubles the desired rate of 2%. Market participants will keenly focus on the interest rate outlook provided by the central bank. Read more…