GBP/USD Price Action at Crossroads as Bank of England Meeting Looms
The recent Federal Reserve meeting has caused significant changes in the Forex market's perception of the US Dollar. The Fed's hawkish tilt, which signaled that inflation remains a serious problem and further tightening is likely, led to a reevaluation of the future path of US rates. This upward repricing of US rates lifted the US Dollar and short-dated Treasury yields.
As markets react to this new information, traders are now looking to the Bank of England's policy meeting for guidance on the British Pound. The meeting could have a significant impact on the market's perception of the Pound and potentially trigger another price movement in the GBP/USD currency pair.
The technical picture is currently bearish, with the price holding above the support level at 1.3369 after breaking through two other support levels. However, there is a note of caution for bears as the short-term price action appears to be forming a bullish 'U' shape at this support level.