Pound Sterling Stays Below Key Level Amid FOMC Focus

GBP/USD Analysis: Key Points to Consider

• GBP/USD remains below 1.3100 after Tuesday’s slight recovery.
• Bearish sentiment persists in the short term.
• Investors eagerly await the release of the FOMC’s September meeting minutes.

GBP/USD experienced marginal gains on Tuesday but struggled to surpass the 1.3100 mark. The pair is relatively calm in the European session today as market participants anticipate the Federal Reserve (Fed) to disclose the minutes of the September policy meeting.

British Pound Price Performance This Week

The table below illustrates the percentage change of the British Pound (GBP) against major currencies this week. Notably, the Pound exhibited weakness against the Japanese Yen.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.04%	0.19%	-0.09%	0.73%	0.86%	1.28%	-0.18%

The fluctuating market sentiment, coupled with a notable decline in China’s Shanghai Composite Index, has limited the upside potential for GBP/USD today.

The Fed’s recent 50 basis points rate cut has put the spotlight on the FOMC Minutes. Market participants are keen to assess if further substantial rate reductions are on the horizon.

If the minutes indicate a reluctance among policymakers to continue aggressive easing measures, the USD may receive a temporary boost. However, market expectations already factor in a high probability of a smaller 25 bps rate cut in November. Therefore, any positive impact on the USD from hawkish minutes may be short-lived.

GBP/USD Technical Analysis

The Relative Strength Index (RSI) suggests bearish momentum for GBP/USD, with potential for further downside before a corrective bounce. Key support levels include 1.3050, 1.3000, and 1.2940, while a breach of 1.3100 could pave the way for an upswing towards 1.3170.

Pound Sterling FAQs

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For more insights into the Pound Sterling and its market dynamics, stay tuned for further updates and analysis.