- GBP/USD fluctuates, registering modest losses after Fed's decision to hold rates steady.
- Fed emphasizes no rate cuts until inflation sustainably nears 2%, maintaining balance sheet reduction.
- Key resistance at 1.2843 (50-hour SMA), 1.2855 (100-hour SMA), and 1.2873 (200-hour SMA); support at 1.2800, 1.2778, and 1.2750.
The GBP/USD whipsawed during the North American session after the Federal Reserve (Fed) decided to keep rates unchanged yet pushed back against easing policy, noting, “The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.” The major trades are volatile, around 1.2800-1.2850, and register modest losses.
GBP/USD dips slightly on Fed’s hawkish hold
The Federal Reserve acknowledged that inflation has eased somewhat over the year yet “remains somewhat elevated.” Policymakers noted that the dual mandate risks became more balanced, and “the Committee is attentive to the risks to both sides of its dual mandate.”
Regarding its balance sheet reduction, “the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities” and the Fed reinforced its commitment to returning inflation to its 2% objective.
GBP/USD Reaction to Federal Reserve’s decision
The 1-hour chart witnessed the GBP/USD diving to a new day low of 1.2819 yet has recovered some as market participants await Powell’s press conference, for any hints to ease policy.
Key resistance lies at the 50-hour SMA at 1.2843, the 100-hour SMA at 1.2855 and further resistance at the 200-hour SMA at 1.2873. Once cleared the next resistance would be 1.2900.
On further weakness, the GBP/USD could test 1.2800, followed by the the July 9 low at 1.2778 and the psychological 1.2750. A further downside is seen at the 100-day moving average (DMA) at 1.2682.
British Pound PRICE Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.05% | 0.02% | -1.09% | -0.27% | 0.22% | -0.58% | -0.16% | |
| EUR | -0.05% | -0.01% | -1.16% | -0.33% | 0.16% | -0.62% | -0.22% | |
| GBP | -0.02% | 0.00% | -1.18% | -0.32% | 0.15% | -0.61% | -0.20% | |
| JPY | 1.09% | 1.16% | 1.18% | 0.93% | 1.35% | 0.55% | 1.01% | |
| CAD | 0.27% | 0.33% | 0.32% | -0.93% | 0.46% | -0.32% | 0.10% | |
| AUD | -0.22% | -0.16% | -0.15% | -1.35% | -0.46% | -0.78% | -0.38% | |
| NZD | 0.58% | 0.62% | 0.61% | -0.55% | 0.32% | 0.78% | 0.41% | |
| CHF | 0.16% | 0.22% | 0.20% | -1.01% | -0.10% | 0.38% | -0.41% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Next target comes at the 200-day SMA
AUD/USD managed to make a U-turn and reverse the earlier pullback to fresh lows near 0.6480, reclaiming the area beyond 0.6500 the figure on the back of further losses in the US Dollar.
EUR/USD sees the glass half-full after the Fed
EUR/USD left behind part of the weekly retracement and flirted with the mid-1.0800s in response to the increased selling pressure in the Greenback after Chair Powell hinted at a September rate cut.
Gold rises to daily highs as Powell unveils a probable rate cut
The precious metal maintains its bullish bias, and climbs to fresh tops past $2,430 per ounce troy after a September rate cut remains on the table.
Ripple rallies on hope of lawsuit win, XRP extends gains to $0.65
Ripple (XRP) is making headlines for the anticipated final ruling in the Securities & Exchange Commission (SEC) lawsuit. The lawsuit and SEC’s stance on XRP has acted as an influential market mover for XRP since the beginning.
FOMC: 'Twas the meeting before rate cuts
As was widely anticipated, the FOMC left the fed funds rate unchanged at the conclusion of today's meeting, but it opened the door to potentially easing policy at its next meeting on September 18.