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GBP/USD Stuck in Limbo Ahead of Fed and BoE Decisions

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The GBP/USD exchange rate has been stuck in a narrow range between 1.3285 and 1.3365, mirroring its July path of weakness.

This indecision comes as the market awaits key decisions from both the Federal Reserve and the Bank of England, which will likely dictate the pair's next move.

The Fed's decision at 2:00 p.m. ET Wednesday is expected to be a no-change announcement, with a 33% to 35% probability of a surprise quarter-point increase.

In contrast, the Bank of England's decision on Thursday will focus on inflation projections, which have been overtaken by events in the energy market.

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