GBP/USD Forecast: Pound Sterling could target multi-year highs on hawkish BoE vote split
GBP/USD touched its highest level since March 2022 near 1.3300 in the early American session on Wednesday. Although the pair retreated later in the day, it managed to close in positive territory. Ahead of the Bank of England's (BoE) monetary policy announcements, the pair gathers bullish momentum and trades comfortably above 1.3250.
The Federal Reserve (Fed) decided to lower the policy rate by 50 basis points (bps) to the range of 4.75%-5% after the September meeting. The immediate market reaction caused the US Dollar (USD) to come under heavy selling pressure and triggered an upsurge in GBP/USD. Read more...
GBP/USD unlocks new high, but eyes remain on 1.3200
GBPUSD remains committed to closing above the 1.3200 level for one more day. The Fed delivered a surprise double rate cut of 50bps on Wednesday, lifting the pair to a new 2 ½-year high of 1.3296. Powell expressed confidence in avoiding a downturn but gave no clear indication of the pace of the easing cycle, causing the price to drop below 1.3200 again.
The BoE’s rate decision is the next highlight on the calendar, and the pair is currently flirting with the August bar of 1.3265. With the RSI consistently rising above 50 and the MACD about to cross its red signal line in the positive region, the risk is skewed to the upside. Yet, with the stochastic oscillator preparing for a downturn, room for improvement might be limited. Read more...
Elliott Wave: GBP/USD ready to resume higher
Yesterday, the UK CPI data came out as expected at 2.2% year-over-year, and Cable broke above the 1.3300 level on speculation that the Bank of England will maintain its current interest rate policy. With rates expected to remain unchanged, this could keep the pound in an uptrend. From an EW perspective I also think pair may resume higher from current levels after forming an a-b-c irregular correction, finding support recently at 1.3150. Read more...
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