GBP/USD finds a floor at 1.3200 after Fed-induced sell-off
The GBP/USD pair is consolidating around the 1.3200 level on Thursday, following significant losses in the previous session. The pair is now trading near its lowest point since April 2025, with selling pressure intensifying after the Federal Reserve cut interest rates by 25 basis points. While delivering the expected cut, Fed Chair Jerome Powell struck a hawkish note by stressing that further easing this year is not guaranteed, bolstering the US dollar.
The pound faces its own set of domestic headwinds. Mounting expectations of a Bank of England rate cut, combined with concerns over the upcoming November budget, are weighing on sentiment. During parliamentary hearings, Prime Minister Keir Starmer refused to rule out potential rises in income tax, national insurance, and VAT. Read more…
GBP/USD outlook: Extends steep decline on growing expectations for BoE rate cut
Cable hit three-month low on Wednesday, extending the steep bear-leg which emerged after strong upside rejection at daily cloud, into second consecutive week.
Fresh bears broke through important support provided by 200DMA (1.3239) and cracked 1.3200 level that unmasks key short-term support at 1.3141 (Aug 1 low (Fibo 38.2% of 1.2999/1.3788). Read more…
