GBP/USD Awaits Central Bank Decisions with Uncertain Economic Outlook

On Wednesday, the British Pound (GBP) exhibited subdued activity, with market participants awaiting key interest rate decisions from the US Federal Reserve (Fed) and the Bank of England (BoE). The GBP/USD exchange rate is in a state of anticipation, with consensus leaning towards the BoE maintaining the current interest rate levels.

Investor confidence in the Pound is tepid, with the prevalent sentiment that the BoE will opt for a rate hold due to concerns over a potential downturn in the UK's economic performance, despite persistent inflationary pressures. Investors are not just focused on the immediate policy decision but are also seeking clarity on the future trajectory of interest rates and the inflation forecast. UK Prime Minister Rishi Sunak's January pledge to cut inflation to 5.4% by the end of the year faces headwinds, as the annual inflation rate stood firm at 6.7% in September, showing little change since July.

GBPUSD is touching the last support at 1.2070 waiting for more developments to find direction. The pair is bearish, and more selloffs can come with the strength of the dollar and the pound's weakness. Volatility will be high today and tomorrow for the pair.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.2450	1.2300	1.2200	1.2000	1.1900	1.1800