Will GBP/USD make a comeback after post-Fed tumble?
GBP/USD is trying to heal its wounds after taking a hit from the Fed’s hawkish rate cut, which squeezed the price to a three-week low of 1.2560 and back below the 20-day simple moving average (SMA) late on Wednesday.
Unlike its major peers, the British pound avoided new lower lows in the short-term picture and managed to hold its ground above the 1.2510 support zone as traders maintained some patience ahead of the Bank of England’s rate decision. However, despite this resilience, the technical indicators remain bearish and the completed death cross between the 50- and 200-day SMAs may keep traders on edge, unless something changes soon. Read more...
GBP/USD Forecast: Pound Sterling rebounds as focus shifts to BoE
After suffering heavy losses in the American session on Wednesday, GBP/USD stages a decisive rebound early Thursday as investors reposition themselves ahead of the Bank of England's (BoE) monetary policy announcements.
The Federal Reserve (Fed) lowered the policy rate by 25 basis points after the December meeting, as expected. The revised Summary of Economic Projections (SEP), also known as the dot plot, showed that Fed officials' median view of the policy rate at end-2025 stood at 3.9%, up from 3.4% in September's SEP. According to the projections, one of 19 officials see no cuts in 2025, three see one cut, 10 see two cuts, three see three cuts, one sees four cuts and one sees five cuts. Read more...
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