GBP/USD remains on the defensive below 1.2150, Fed, BoE rate decisions eyed

GBP/USD extends its downside around 1.2140 ahead of key events.
Federal Open Market Committee (FOMC) is expected to hold the rate unchanged at its November meeting while holding a hawkish stance.
Bank of England (BoE) is anticipated to keep rates steady amid the fear of potential recession in the UK.
The FOMC and BoE meetings will be in the spotlight ahead of the US Nonfarm Payrolls data.

Lallalit Srijandorn FXStreet

The GBP/USD pair remains on the defensive during the early Asian session on Wednesday. The major pair faces rejection near the 1.2200 mark. Market players await the highly anticipated Federal Open Market Committee (FOMC) policy meeting on Wednesday ahead of the Bank of England (BoE) on Thursday. These events might trigger the volatility in the market. GBP/USD currently trades near 1.2139, losing 0.11% on the day.

The two-day FOMC policy meeting begins today and will end in late Wednesday. The markets anticipate the FOMC to hold the interest rate unchanged at its November meeting. Traders will keep an eye on the FOMC Chair Powell’s press conference for fresh impetus. If the FOMC delivers a hawkish message, the US Dollar (USD) might attract some buyers and weigh on the GBP/USD pair.

On the other hand, the Bank of England (BoE) is expected to keep interest rates steady at 5.25% at its November meeting on Thursday amid growing worries about a recession in the UK economy. Following the meeting, BoE governor Andrew Bailey might offer some hints about the latest forecasts for the UK economy and the future of monetary policy.

The weaker UK data and stubborn inflation exert pressure on the British Pound (GBP) and act as a headwind for the GBP/USD pair. Additionally, the elevated geopolitical risks in the Middle East might boost safe-haven flows and benefit the Greenback.

Investors will take cues from the US ADP employment report, JOLTS Job Openings, and the ISM Manufacturing PMI ahead of the FOMC meeting on Wednesday. On Thursday, the BoE rate decision and BoE Governor Bailey's speech will be the highlights. The US employment data, including Nonfarm Payrolls and Average Hourly Earnings for October, will be released on Friday.

GBP/USD

Overview
Today last price	1.2144
Today Daily Change	-0.0009
Today Daily Change %	-0.07
Today daily open	1.2153

Trends
Daily SMA20	1.2183
Daily SMA50	1.2329
Daily SMA100	1.2562
Daily SMA200	1.2438

Levels
Previous Daily High	1.2201
Previous Daily Low	1.212
Previous Weekly High	1.2289
Previous Weekly Low	1.207
Previous Monthly High	1.2337
Previous Monthly Low	1.2037
Daily Fibonacci 38.2%	1.2151
Daily Fibonacci 61.8%	1.217
Daily Pivot Point S1	1.2115
Daily Pivot Point S2	1.2077
Daily Pivot Point S3	1.2034
Daily Pivot Point R1	1.2196
Daily Pivot Point R2	1.2239
Daily Pivot Point R3	1.2277

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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