GBP/USD Price Analysis: Oscillates in trading range above 1.2700 ahead of Fed, BoE rate decision

Source Fxstreet
  • GBP/USD consolidates in a trading range near 1.2708 ahead of the Fed and BoE rate decisions this week.
  • The Relative Strength Index (RSI) indicator suggests the non-directional action of the pair. 
  • The immediate resistance level is located at 1.2738; the next support level will emerge at 1.2675.

The GBP/USD pair remains confined in a narrow trading range above the 1.2700 mark during the early European trading hours on Tuesday. Investors prefer to wait on the sidelines ahead of key events from the Federal Reserve (Fed) and the Bank of England (BoE). At press time, GBP/USD is trading at 1.2708, down 0.02% on the day. 

The Fed is widely anticipated to hold benchmark interest rates steady at a 23-year high of 5.25–5.50% at its January meeting on Wednesday, after a lengthy effort to tame rampant inflation. Meanwhile, the BoE is expected to keep rates steady. Nonetheless, signs that the inflation crisis is easing off might convince the UK central bank to lower rates after all.

From a technical perspective, GBP/USD oscillates in the two-week-old trading range on the four-hour chart. The major pair is above the 100-hour Exponential Moving Average (EMA). However, the bullish outlook of GBP/USD remains vulnerable as the Relative Strength Index (RSI) hovers around the 50 midlines, suggesting the non-directional action of the pair. 

The upper boundary of the Bollinger Band at 1.2738 acts as an immediate resistance level for the pair. A decisive break above the latter will pave the way to a high of January 26 at 1.2758. Further north, the next upside target to watch is a high of January 12 at 1.2785, en route to a high of December 28 at 1.2828.

On the other hand, a breach of the 1.2700 round figure will see a drop to the lower limit of the Bollinger Band at 1.2675. The critical contention level is seen at the 1.2600–1.2610 zone, representing the confluence of the psychological mark and a low of January 2. Any follow-through selling below the latter will expose a low of December 11 at 1.2535.

GBP/USD four-hour chart

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Drops Below $83,000 as US Government Transfers Over 10,000 BTC, Sparking Panic Over Potential Selling PressureUS government transfers over 10,000 BTC as Bitcoin extends losses to breach $83,000, but a further sharp decline remains unlikely.On October 8, Bitcoin (BTC) extended its recent losses, f
Author  TradingKey
12 hours ago
US government transfers over 10,000 BTC as Bitcoin extends losses to breach $83,000, but a further sharp decline remains unlikely.On October 8, Bitcoin (BTC) extended its recent losses, f
placeholder
Gold falls to a two-month low as real yields bite — can $4,000 hold?Gold hit a two-month low on 7 October, with spot touching roughly $4,090 and COMEX December futures closing at $4,140.70, even as the New York Fed's one-year inflation expectation rose to 3.9% — its highest since May 2023. The paradox resolves through real yields: the 30-year Treasury yield reached 5.732% intraday, its highest since 2002. Here are the levels, the institutional split, and the scenarios into tonight's jobless claims and 30-year auction.
Author  Irene Q.
12 hours ago
Gold hit a two-month low on 7 October, with spot touching roughly $4,090 and COMEX December futures closing at $4,140.70, even as the New York Fed's one-year inflation expectation rose to 3.9% — its highest since May 2023. The paradox resolves through real yields: the 30-year Treasury yield reached 5.732% intraday, its highest since 2002. Here are the levels, the institutional split, and the scenarios into tonight's jobless claims and 30-year auction.
placeholder
Gold Price Forecast: Gold Drops Below $4,100, Could Test $4,000 in Short TermAs of the Asian session on October 8, gold prices (XAUUSD) maintained a weak rebound trend today, with the latest price trading around $4,120; yesterday, gold prices briefly fell below $4
Author  TradingKey
12 hours ago
As of the Asian session on October 8, gold prices (XAUUSD) maintained a weak rebound trend today, with the latest price trading around $4,120; yesterday, gold prices briefly fell below $4
placeholder
Euro slides to a 17-month low as France's budget crisis spreads — can 1.12 hold?EUR/USD touched 1.1162 on 5 October, its weakest level in 17 months, as France's budget standoff pushed the 10-year OAT above 5% and the OAT-Bund spread to roughly 160bp — the widest since the 2011-12 eurozone debt crisis. The euro now trades near 1.1215 ahead of US jobless claims and a $22 billion 30-year Treasury auction. Here are the levels and the two scenarios to watch.
Author  Irene Q.
13 hours ago
EUR/USD touched 1.1162 on 5 October, its weakest level in 17 months, as France's budget standoff pushed the 10-year OAT above 5% and the OAT-Bund spread to roughly 160bp — the widest since the 2011-12 eurozone debt crisis. The euro now trades near 1.1215 ahead of US jobless claims and a $22 billion 30-year Treasury auction. Here are the levels and the two scenarios to watch.
placeholder
Today’s Market Recap: 10-Year Treasury Yield Hits Highest Since 2002,U.S. Stocks Fall as Brent Barely Holds $100Tracking the Market TrendTradingKey - On October 7, U.S. Eastern Time, the 10-year Treasury yield climbed to an intraday high of 5.36%, its highest level since 2002, while all three major U.S. stock i
Author  TradingKey
19 hours ago
Tracking the Market TrendTradingKey - On October 7, U.S. Eastern Time, the 10-year Treasury yield climbed to an intraday high of 5.36%, its highest level since 2002, while all three major U.S. stock i
Related Instrument
goTop
quote