FxWirePro: GBP/USD attracts selling interest after Fed rate decision , vulnerable to more downside

• GBP/USD declined sharply  on Wednesday after the Federal Reserve delivered a widely expected interest rate cut.

• The Fed cut its benchmark policy rate by 25 basis points, bringing it to a range of 4.25% to 4.50%. Officials indicated that, with a stable labor market and inflation, they are likely to pause further rate cuts next year. 

•Policymakers now anticipate two interest rate cuts by the end of 2025, down from the four projected in September, and have signaled a likely pause in January.

•At GMT 20:24, Sterling was last down  0.99% on the dollar at 1.2583, its lowest  since November 27th .

• Immediate resistance is located at 1.2645 (38.2%fib), any close above will push the pair towards 1.2728(Daily high).

•Support is seen at 1.2565(Daily low) and break below could take the pair towards 1.25213(23.6%fib).

Recommendation: Good to sell around 1.2600 with stop loss of 1.2670 and target price of 1.2520