The GBP/USD pair experienced fluctuations in the North American session following the Federal Reserve’s decision to maintain interest rates. Despite the Fed’s hawkish stance on rate cuts and inflation, the pair recorded modest losses within the range of 1.2800-1.2850.
Fed’s Stance on Rates and Inflation
The Fed reiterated its commitment to keeping rates steady until inflation reaches the 2% target sustainably. The central bank emphasized the need for greater confidence in inflation moving towards the desired level before considering any rate adjustments.
Furthermore, the Fed outlined its plans to continue reducing its holdings of Treasury securities and agency debt, while also focusing on returning inflation to the 2% objective.
Technical Analysis and Key Levels
On the technical front, key resistance levels for GBP/USD are identified at 1.2843 (50-hour SMA), 1.2855 (100-hour SMA), and 1.2873 (200-hour SMA). In case of a breakout, the next resistance level stands at 1.2900.
Conversely, if the pair weakens, support levels can be found at 1.2800, 1.2778, and 1.2750, with further downside potential towards the 100-day moving average at 1.2682.
Impact on British Pound Currency Today
The British Pound exhibited varied performance against major currencies today. Notably, the Pound showed strength against the Australian Dollar, while experiencing minor fluctuations against other pairs.
Overall, the Fed’s decision and the subsequent market reaction have influenced the GBP/USD pair’s movements, highlighting the importance of monitoring key levels and staying informed about central bank policies.