GBP Takes a trivial place before meeting with the Fed and ECB. GBPUSD maintains support and climbs through the rising channel

GBPUSD CONTINUES TO BE SUPPORTED AND GRINDS UP WITHIN THE INCREASING CHANNEL

The gradual decline in the value of the dollar has undoubtedly benefited GBP as seen by the duo’s new annual high on Friday. Rate increases typically help the Pound, but because of the likelihood of worsening economic conditions. Markets are already pricing in rate cuts of about 50 basis points.

GBP Focus On Tonight’s Much-Anticipated Fed Rate Raise

One of the most awaited rate increases of the present hiking cycle is expected to be issued by the FOMC this evening. The Fed previously established the Fed funds price top at 5.1% (mean value). Indicating a rise over 5% would be the last. regardless of variable bond movements.

Yesterday, the markets predicted that there would be a 25-basis point (bps) increase this evening. But that prediction has since dropped due to the undisputed movement that occurred last night as the US came online. Following JP Morgan’s acquired First Republic Bank, new banking concerns spread throughout the sector once more. Causing oil to trade considerably lower as gold, a safe haven, shot beyond its current range.

Source: CME FedWatch Tool

Technical Perspective

Since inflation is still in double digits, at its highest in advanced nations and the west of Europe. The US Fed is expected to reach its peak this evening, and the BoE keeps raising interest rates. In light of this, the cable is now trending upward inside the rising channel after late testing support at 1.2445. Prior to the FOMC meeting, upward resistance at 1.2585 is still a key point of interest.

KEY INFORMATION THIS WEEK

With Brits anticipating the King’s crowning over the weekend before the BoE meeting coming up. There is a noticeable absence of event risk for the pound sterling. With the ISM services, PMI print coming out today before the crucial FOMC rate decision and press conference. The Fed is dominating the planned risk events. The ECB will have its own news conference tomorrow, and we’ll wrap up the week’s events with the NFP data. After the US Job Opportunities (JOLTS) statistics showed that 384k positions were eliminated. Could this be a precursor to the labor market becoming increasingly competitive? Perhaps, yet it ought to be paired with a sizable decline in NFP data.

Economic Activity Schedule