Cable traders are expecting a busy day ahead today as the second of the two major central banks of the pair makes its interest rate call just hours after the first one. The Fed raised rates overnight as expected, but the more hawkish tone from the dot plot and press conference should add dollar strength to the market and put pressure on Cable. With the Bank of England largely expected to keep rates on hold at 3.75%, the next move for the pair will come from forward guidance from the MPC.
Anything less hawkish than expected could see cable weaken further while a more hawkish call from the committee should add strength to the pound and challenge recent moves lower. GBPUSD had a good technical break lower overnight through key support levels and a further move south after the announcement could see it challenge long term support around 1.3300 while a hawkish hold could see a rally back towards previous support levels near 1.3450.
Resistance 2: 1.3494 – Yesterday’s High
Resistance 1: 1.3452 – 200 Day Moving Average
Support 1: 1.3307 – Trendline Support
Support 2: 1.3270 – 2026 Low
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