GBP/USD stabilizes as Dollar eases, as traders await Fed minutes

• GBP/USD lifted by risk appetite, while DXY retreats from highs.
• Traders eye upcoming Fed minutes for policy clues, amid the US government shutdown entering its eighth day.
• BoE's Huw Pill stresses focus on price stability, warning policymakers must stay committed to taming inflation.

The GBP/USD recovers ground on Wednesday as the Greenback trims some of its earlier gains amid a scarce economic docket on both sides of the Atlantic. At the time of writing, the pair trades at 1.3425 up 0.08%.

Sterling finds footing near 1.34 amid improved sentiment and cautious tone from global policymakers

The British Pound stopped the bleeding as risk appetite improved and the buck, retreated. Nevertheless, the US Dollar Index (DXY), which tracks the performance of the buck's value against a basket of six currencies, including Sterling, is up 0.25% at 98.82, but beneath daily highs of 98.98.

The US government shutdown extends to its eight straight days. Bloomberg Wasson revealed that US House Speaker Johnson opposes any attempt to end the Senate filibuster to bypass Democrats and reopen the government.

The lack of economic data in the US left traders adrift to comments by Federal Reserve officials. St. Louis Fed Alberto Musalem and Governor Michael Barr crossed the wires but did not comment on monetary policy or the economic outlook. Later, traders will digest the latest minutes of the Federal Open Market Committee (FOMC) monetary policy meeting.

Additionally, investors would digest words from Minneapolis Fed Neel Kashkari, Dallas Fed Lorie Logan and once more Fed Governor Michael Barr.

Across the pond, analysts estimate the UK economy to grow modestly, while inflation remains high near 4. They are also penciling the release of the British fiscal budget on November 26, which has the potential of tax hikes to meet fiscal rules.

Meanwhile BoE Chief Economist Huw Pill is crossing the wires, said that monetary policy should be resolutely focused on price stability and that policymakers should make a clear and credible commitment to achieve the inflation objective. On Thursday, traders eye BoE Catherine Mann speech.

GBP/USD Price Forecast: Technical outlook

The GBP/USD remains subdued, set to remain below 1.3500 for the foreseeable week. Key resistance levels should be surpassed, so buyers could gain control and push the pair towards the September peak at 1.3726. The next resistance zone is the 50-day SMA at 1.3468, the 20-day SMA at 1.3490, the 100-day SMA at 1.3495 and the 1.3500 figure.

On the flipside, a drop below the September 25 swing low of 1.3324, clears the path to assess the 200-day SMA at 1.3160.