Select Language

GBP/USD halts decline ahead of Fed and BoE's decisions, traders eye UK CPI

Breaking news

GBP/USD halts decline ahead of Fed and BoE's decisions, traders eye UK CPI

  • twitter
  • facebook
  • LINE
  • RSS

  • twitter
  • facebook
  • LINE
  • RSS
New update 2023.09.20 03:32
GBP/USD halts decline ahead of Fed and BoE's decisions, traders eye UK CPI

update 2023.09.20 03:32

  • GBP/USD trades at 1.2395, showing slight gains, but remains below the key 1.2400 level.
  • Federal Reserve expected to hold rates steady, while the Bank of England is anticipated to raise rates by 25 basis points.
  • UK inflation data and the US Federal Reserve’s monetary policy decision are the key events to watch this week.

The British Pound (GBP) halts last week’s fall against the buck (USD) and prints minuscule gains vs. the latter despite rising US Treasury bond yields, as the UK and US central banks are expected to reaffirm its restrictive stance. Therefore, the GBP/USD is trading at 1.2395 after hitting a daily low of 1.2369, though it is still below the 1.2400 figure.

The British Pound steadies against the US Dollar as the Federal Reserve and the Bank of England are set to announce their monetary policy decisions

US  equities extended its losses as sentiment deteriorates ahead of the central bank bonanza. The Federal Reserve is expected to hold rates unchanged amid the latest round of economic data, which revealed inflation in the consumer and producer side rose. In contrast, consumer spending expanded, though at a slower rhythm.

The Federal Funds Rate (FFR) would likely remain at the 5.25%-5.50% range, and in the same meeting, Fed officials would update their economic projections. In the June Summary of Economic Projections (SEP) the Fed anticipated 1% economic growth, a 4.1% unemployment rate, 3.2% PCE inflation, 3.9% core PCE inflation, and a peak FFR of 5.60%.

The swaps market shows the FFR would peak at current pricing, while estimates for the first rate cut are seen in July 2024, as shown by the picture below.

Financial Source Interest Rate Probabilties

Source: Financialsource

Across the pond, the Bank of England’s (BoE) is foreseen to raise rates 25 bps to 6.50%, which, according to STIRs markets, would be the highest level expected. Even though the UK’s inflation has fallen from 11.1% to 6.8%, it’s the highest among developed countries, and it’s getting lowered at a slower pace than estimated. In addition, the economy in the UK is slowing more than economists forecast, which could deter the BoE from continuing to increase the Bank Rate amid risks of triggering a recession.

The UK economic docket will reveal inflation data ahead of the BoE’s decision on Wednesday. The Consumer Price Index (CPI) is expected to jump, while the core CPI would decelerate a tick. The week’s main event on the US front would be the Federal Reserve’s monetary policy decision, followed by the Fed Chair Jerome Powell press conference.

GBP/USD Price Analysis: Technical outlook

The downward bias remains intact, as shown by the daily chart. With the GBP/USD trading below the 50 and 200-day Moving Averages (DMAs) while drifting lower and printing successive series of lower highs and lows would keep the GBP/USD at around current levels. To shift its bias neutral, buyers must break the August 25 latest swing low at 1.2548; otherwise, further falls are expected, with sellers eyeing the May 25 low of 1.2308. Further downside is expected below that level, with the March 15 swing low at 1.2010.


Today last price 1.2393
Today Daily Change 0.0010
Today Daily Change % 0.08
Today daily open 1.2383
Daily SMA20 1.2559
Daily SMA50 1.2723
Daily SMA100 1.2652
Daily SMA200 1.2433
Previous Daily High 1.241
Previous Daily Low 1.237
Previous Weekly High 1.2548
Previous Weekly Low 1.2379
Previous Monthly High 1.2841
Previous Monthly Low 1.2548
Daily Fibonacci 38.2% 1.2395
Daily Fibonacci 61.8% 1.2386
Daily Pivot Point S1 1.2365
Daily Pivot Point S2 1.2348
Daily Pivot Point S3 1.2325
Daily Pivot Point R1 1.2406
Daily Pivot Point R2 1.2428
Daily Pivot Point R3 1.2446





 : 2023.09.20


Last updated

 : 2023.09.20

Related articles

Show more



Financial media


FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

GBP/USD defends the 100-day SMA ,further downside on the horizon

The GBP/USD lost ground but managed to clear losses after finding support at a daily low of 1.2615, near the 100-day Simple Moving Average (SMA) and t
update2023.08.24 05:45

USD/CHF Price Analysis: Within a narrow range, hovers around the 0.8750s area

USD/CHF has been trading within a narrow range of 0.8765 to 0.8830 for the past eight days, following a break of the 0.8600 figure. At the time of wri
update2023.08.24 06:23

Gold Price Forecast: XAU/USD closed above the 200-day SMA rising to a two-week high

In Tuesday's session, the XAU/USD Gold spot price found demand as the leading world economies showed weak economic activity figures, which fueled a de
update2023.08.24 06:39

AUD/USD bulls approach 0.6500 amid downbeat yields, risk-on mood, focus on US Durable Goods Orders

AUD/USD buyers take a breather while making rounds to 0.6480, after rising the most in three weeks the previous day. In doing so, the Aussie pair port
update2023.08.24 07:16

USD/CAD slumps as CAD gains traction; US economic slowdown in focus

The Canadian Dollar (CAD) recovered some ground against the American Dollar (USD), as seen by the USD/CAD pair, finishing Wednesday's session with los
update2023.08.24 07:34

Japan Exchange Group CEO Yamaji flags economic side effects of "too weak Yen"

Hiromi Yamaji, Chief Executive Officer of Japan Exchange Group Inc. criticized the weaker Yen while citing the receding benefits of the softer currenc
update2023.08.24 07:39

NZD/USD consolidates its recent gains above 0.5970 ahead of Jackson Hole Symposium

The NZD/USD pair consolidates its recent gain below the 0.6000 mark during the early Asian session on Thursday. The weakening of the US dollar is driv
update2023.08.24 07:45

EUR/USD rebounds from 10-week low beneath 1.0900 on Fed, ECB policy pivot concerns, US data, yields eyed

EUR/USD makes rounds to 1.0860-65 during the early hours of Thursday's Asian session as bulls take a breather after posting a stellar rebound from the
update2023.08.24 07:52

USD/JPY Price Analysis: Stumbles below 145.00 amid falling US bond yields as the pair turns bearish

USD/JPY retraced its earlier weekly gains, as the pair printed losses of 0.72% on Wednesday, courtesy of falling US bond yields, as US economic data w
update2023.08.24 07:59

GBP/USD Price Analysis: Multiple hurdles, US data prod Cable buyers above 1.2700

GBP/USD stays defensive around 1.2715-20 during the early hours of Thursday's Asian session, fading the previous day's rebound from the lowest level i
update2023.08.24 08:19


All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree