The British pound rose above 1.30 after the Federal Open Market Committee (FOMC) meeting showed a softer stance than expected. However, in the European market, the pound fell as traders adjusted their positions before the Bank of England (BOE) meeting, pushing it down to the 1.29 range.
As expected, the BOE kept interest rates at 4.5%. The market thought two members would support a rate cut, but only one did, leading to a brief rise in the pound. However, BOE Governor Bailey said interest rates will slowly decrease, and the market expects two rate cuts this year.
Since the start of the year, the pound has been in an upward trend due to expectations of US rate cuts. The recent high of 1.3014 is an important level, as it was where a decline started last November.
With concerns about Trump’s tariffs, the market is watching to see if the pound will start falling.
GBP/USD Expected Range: 1.3000 – 1.2900
Note: This information does not guarantee profits. Make your own decisions before trading.