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
Markets in 2026: Will gold, Bitcoin, and the U.S. dollar make history again? — These are how leading institutions thinkAfter a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
Author  Insights
Dec 25, 2025
After a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
placeholder
Solana Future: From high-speed experiment to corporate treasury playbook for the next SOL cycleSolana’s Proof of History architecture is colliding with rising institutional treasury adoption and governance scrutiny, with SOL’s next cycle hinging on validator distribution, stability, and regulated capital access.
Author  Mitrade
Jan 12, Mon
Solana’s Proof of History architecture is colliding with rising institutional treasury adoption and governance scrutiny, with SOL’s next cycle hinging on validator distribution, stability, and regulated capital access.
placeholder
Silver Price Forecast: XAG/USD corrects to near $86.50 as Iran stops killing protestersSilver price corrects almost 6% to near $86.50 during the Asian trading session on Thursday.
Author  FXStreet
Jan 15, Thu
Silver price corrects almost 6% to near $86.50 during the Asian trading session on Thursday.
placeholder
Standard Chartered lifts Ethereum call to $7,500, arguing institutional demand could leave Bitcoin trailingStandard Chartered raised its year-end Ethereum target to $7,500 (from $4,000), citing institutional demand, while projecting $25,000 by 2028 and scenarios toward $40,000 by 2030 amid ETF- and treasury-driven accumulation.
Author  Mitrade
Jan 15, Thu
Standard Chartered raised its year-end Ethereum target to $7,500 (from $4,000), citing institutional demand, while projecting $25,000 by 2028 and scenarios toward $40,000 by 2030 amid ETF- and treasury-driven accumulation.
placeholder
Bitcoin Flashes Classic Bottom Signals as BTC Nears $101K ReclaimBitcoin nears two-month highs with key indicators signaling potential for further gains as it targets $101,000.
Author  Mitrade
Jan 16, Fri
Bitcoin nears two-month highs with key indicators signaling potential for further gains as it targets $101,000.
Related Instrument
goTop
quote