• GBP/USD dipped on Monday as investors geared up for upcoming interest rate decisions from the U.S. Federal Reserve and the Bank of England.
• Global investors are awaiting the U.S. central bank's monetary policy decision on Wednesday, as policymakers remain divided on whether further rate cuts are needed to help the job market or too risky due to elevated inflation.
• Traders are pricing in an 87% chance of a 25 bps rate cut this week, according to CMEGroup's Fedwatch tool, with the odds boosted by mixed U.S. economic data and comments from Fed officials.
• The Bank of England is widely expected to maintain interest rates on Thursday, following a 25-basis-point cut last month.
• Immediate resistance is located at 1.3368( Higher BB), any close above will push the pair towards 1.3495(38.2%fib)
• Strong support is seen at 1.3216(50%fib) and break below could take the pair towards 1.3197(SMA 20).
Recommendation: Good to buy around 1.3300, with stop loss of 1.3250 and target price of 1.3380
