GBP/USD Pauses Ahead of Fed-BoE Policy Decisions
The GBP/USD pair is trading with caution around 1.3300 ahead of the Federal Reserve's monetary policy announcement on Wednesday and the Bank of England's decision on Thursday.
Investors expect both the Fed and BoE to leave interest rates unchanged, but there are signs that the Fed may hike rates in September, with an 80.8% chance indicated by the CME FedWatch tool.
US President Donald Trump has weighed in, suggesting that Fed Chairman Kevin Warsh should lower interest rates due to a good inflation report and rapidly falling costs.
The GBP/USD pair is technically bearish, trading below its 20-period Exponential Moving Average (EMA) at 1.3358 and the broader descending resistance trend line from 1.3862.