GBPUSD is consolidating in a trading range near 1.2708 ahead of the Fed and BoE rate decisions this week.
During Tuesday’s early European trading hours, the GBPUSD pair was restricted to a narrow trading range above the 1.2700 mark. Moreover Investors prefer to remain on the sidelines. As the Federal Reserve (Fed) and the Bank of England (BoE) conduct significant events. At press time, the GBPUSD was trading at 1.2708, down 0.02% for the day.
Furthermore The Fed is generally expected to At its January meeting on Wednesday. The Fed held benchmark interest rates constant at a 23-year high of 5.25-5.50%. Capping a lengthy campaign to curb runaway inflation. Meanwhile, the BoE is anticipated to hold interest rates constant. Nonetheless, hints that the inflation issue is lessening may persuade the UK central bank to decrease interest rates after all.
Technical Outlook
The Relative Strength Index (RSI) indicator indicates. That the pair is not moving in a specific direction.
The immediate resistance level is at 1.2738. With the next support level at 1.2675.
Technically, GBPUSD oscillates within a two-week-old trading range on the four-hour chart. The primary pair is above the 100-period exponential moving average (EMA). However, the bullish prognosis for GBPUSD remains susceptible as the Relative Strength Index (RSI) hangs around the 50 midline, indicating the pair’s non-directional activity.
The upper boundary of the Bollinger Band, 1.2738. Serves as an immediate resistance level for the pair. A significant break above the latter will open the path to a peak on January 26 at 1.2758. Further north, the next upward objective is the January 12 high of 1.2785, followed by the December 28 high of 1.2828.
Moreover If the 1.2700 round number is breached, the price will fall to the lower boundary of the Bollinger Band at 1.2675. The important conflict level is visible at 1.2600-1.2610. Which represents the confluence of the psychological mark and the January 2 low. Any more selling below the latter will reveal a low on December 11 at 1.2535.
