GBP/USD consolidates its gains above 1.2550, investors await Fed rate decision
The GBP/USD pair consolidates its gains near 1.2560 after flirting with the key 200-day SMA and three-week highs in the 1.2550-1.2560 zone during the early Asian session on Tuesday. The recovery of the major pair is supported by a falling US Dollar Index (DXY) to 105.65. On Wednesday, the Federal Open Market Committee’s (FOMC) interest rate decision will take center stage ahead of the release of April’s Nonfarm Payrolls (NFP) on Friday.
The US Federal Reserve (Fed) is widely anticipated to hold rates steady at a more than two-decade high after their meeting on Wednesday. Investors will take more cues from the tone of the meeting and Chair Jerome Powell’s press conference. Financial markets expect only one Fed rate cut in 2024, below the roughly six quarter-point cuts they expected at the beginning of the year. Read more…
GBP/USD Price Analysis: Climbs above 1.2500, with bulls targeting 200-DMA
The Pound Sterling advanced sharply against the US Dollar in early trading during Monday’s North American session after hitting a daily low of 1.2474. Rumors of an intervention by Japanese authorities to propel the Japanese Yen (JPY) weighed on the Greenback, which is tumbling against most G8 FX currencies. Therefore, the GBP/USD trades at 1.2534, gaining 0.36%.
From a technical standpoint, the GBP/USD is neutral-biased, though tilted to the downside. It remains below the key 200-day moving average (DMA) at 1.2555, which delineates an asset’s bullishness or bearishness. However, buyers are gathering momentum as the Relative Strength Index (RSI) punches above the 50-midline level. Read more…
Source: https://www.fxstreet.com/news/pound-sterling-takes-a-breather-around-12560-202404300447