GBP/USD Bears Take Control Ahead of Fed Decision

The GBP/USD pair has fallen back from near 1.3500 as bears take control ahead of the Federal Reserve's decision.

Spot prices currently trade around 1.3470-1.3465, just above a one-month low touched on Tuesday, as traders await the outcome of the two-day FOMC meeting.

The US Dollar is seen as a safe-haven asset due to oil-driven inflation risks and elevated US bond yields, capping the GBP/USD pair which fails to benefit from expected UK consumer inflation.

The 200-day Simple Moving Average (SMA) at 1.3455 acts as a key support level, with a break below it paving the way for deeper pullbacks towards the 50.0% retracement at 1.3406 and the 61.8% level at 1.3343.