GBP/USD Awaits Clear Signal from the Fed
The GBP/USD currency pair started the week with relatively calm movements. In the Asian session, the price moved within a narrow range of 1.3320–1.3325. However, this position remains very close to the highest level since October 22nd, which was touched last Thursday. Many market participants are choosing to wait for clearer confirmation of the strengthening, particularly whether the price can hold above the 100-day Simple Moving Average (SMA), before entering new positions.
Meanwhile, the US dollar is weakening and approaching its lowest level since late October. The main reason is speculation that the Federal Reserve may cut interest rates again at its meeting this week. This condition is a major supporter of the GBP's strength against the USD. However, market participants are still refraining from taking aggressive positions as the direction of the Fed's future interest rate policy is still considered to require further confirmation.
Therefore, the market focus is now on the Fed's latest economic projections and Jerome Powell's statement in the post-interest rate decision press conference. Powell's comments have the potential to trigger the next major move for GBP/USD: whether this strengthening trend will continue or reverse. While awaiting this clarity, the market is likely to remain calm, but is poised to become more dynamic if a strong signal emerges from the US central bank. (az)
Source: Newsmaker.id
