GBP/USD Edges Up Ahead of Key Monetary Policy Announcements

The British Pound (GBP) is edging up against the US Dollar (USD), trading at around 1.3300, ahead of the Federal Reserve's (Fed) monetary policy announcement.

Investors are paying close attention to the Fed's decision as traders remain uncertain about whether interest rates will be left unchanged. The CME FedWatch tool shows that the odds of the Fed keeping interest rates steady at 3.50%-3.75% are 69.5%, but some analysts expect a rate hike.

The Bank of England (BoE) is also set to announce its monetary policy decision on Thursday, with most predicting that interest rates will remain unchanged at 3.75%. Analysts at Rabobank argue that while there may be hawkish dissenters, the market is expecting steady policy from the Monetary Policy Committee (MPC), citing soft activity indicators and uncertainty about the autumn budget.

GBP/USD technical analysis suggests a near-term bearish bias, with the pair holding beneath the 20-day exponential moving average (EMA) at 1.3353 and below the broken downward resistance trend line that now caps the market around 1.3489.