GBP/USD snaps six-day losing streak as next Fed rate call looms

• GBP/USD catches a bullish wind for the first time in over a week.
• Despite a near-term reversal, momentum is unlike to sustain through the week.
• The Fed's latest interest rate decision is due on Wednesday, markets broadly expect a rate cut.

GBP/USD caught a thin bounce off the 1.3300 handle on Monday, chalking in the pair's first bullish candle in six straight trading session and keeping Cable bids just north of the 200-day Exponential Moving Average (EMA).

Despite a last-minute pullup to close off a bearish slide, near-term momentum is unlikely to result in any significant changes with a looming Federal Reserve (Fed) interest rate decision.

The Fed's upcoming rate call, due on Wednesday, is broadly expected to be another quarter-point interest rate cut. After months of kicking the can, the Fed finally kicked off a fresh interest rate-cutting schedule at its previous meeting, and markets are firmly convinced the Fed will deliver a second straight cut this week. The key notes from this week's Fed rate decision will be how likely the Fed sounds like it will deliver a third straight rate cut in December.

GBP/USD price forecast

GBP/USD continues to trade under pressure, holding below the 50-day EMA at 1.3428 while finding near-term support around the 200-day EMA at 1.3278. The pair has shown limited follow-through after a small rebound from last week's 1.3250 low, keeping the broader downtrend intact.

Momentum remains weak, with sellers defending each push toward 1.3400. A clear move below 1.3250 would expose the 1.3150 area, while recovery above 1.3450 would be needed to shift the near-term outlook.

RSI near 43 signals muted momentum with room for either direction. Until price breaks out of this tight range, trading is likely to stay choppy.

GBP/USD daily chart