• GBP/USD strengthened on Monday as traders awaited a critical week of central bank meetings, with the Federal Reserve expected to cut interest rates while the Bank of England is likely to leave policy unchanged.
• Investors are watching key rate decisions this week in the U.S., Japan, Britain, Canada, and Norway, with the Federal Reserve’s Wednesday decision in focus.
• The Fed is widely expected to cut rates by 25 basis points, while the Bank of England is seen holding its benchmark rate steady and signaling a slower pace of government bond sales.
• Meanwhile, the BoE is expected to keep rates unchanged on September 18, citing rising inflation, while also slowing its £100 billion-a-year bond unwind amid renewed gilt market volatility.
•Most economists polled see the BOE lowering rates next quarter and delivering another cut early next year.
• Immediate resistance is located at 1.3618 (38.2%fib), any close above will push the pair towards 1.3642(Higher BB)
• Strong support is seen at 1.3504(SMA 20) and break below could take the pair towards 1.3452(50%fib).
Recommendation: Good to buy around 1.3580 with stop loss of 1.3410 and target price of 1.3670
