GBP/USD hangs out near highs ahead of double-header central bank rate calls

• GBP/USD continues to float near 40-month highs around the 1.3600 region.
• Cable traders are holding steady on the high end ahead of rate calls from the Fed and the BoE.
• Both central banks are expected to stand pat on interest rates.

GBP/USD continues to churn chart paper on the high end of 40-month peaks, cycling the 1.3600 region as Cable traders enjoy a continued boost. Greenback flows continue to wither across the board on geopolitical headlines, keeping the Pound Sterling buoyed as dual central bank rate calls loom ahead.

The Israel-Iran conflict continues to spill over, with both sides launching missile strikes at various targets and the Trump administration weighing the concept of getting involved directly in the altercation. Broad-market investor sentiment is banking on the two sides reaching some sort of peace arrangement before the altercation boils over into the surrounding region.

The Federal Reserve (Fed) and the Bank of England (BoE) are both set to release their latest interest rate decisions; both central banks are expected to stand pat on interest rates, but the reactions from their government officials are expected to be wildly different.

US President Donald Trump has gotten increasingly vocal about his wishlist to have the Fed start dropping interest rates, even as Fed policymakers hold in their "wait and see" stance as officials brace for economic fallout from Trump's whipsaw tariff "strategy". The BoE is likewise expected to hold rates steady at 4.25%, but no meaningful shifts in policy stances, or complaints about them, are expected. The Fed reveals its latest rate call on Wednesday, with the BoE slated for early Thursday.

GBP/USD price forecast

Despite cracking the ceiling and pushing into fresh multi-year peaks, GBP/USD is still too close to recent congestion for bulls to declare outright victory just yet. Cable could be poised for a fresh technical pullback, which would put price action on pace to fall back into a still-rising trendline from January's lows near 1.2100.