GBP/USD continued to fall for the second straight day, trading lower around 1.2320 during the Asian session on Thursday. The US Federal Reserve's (Fed) hawkish stance puts downward pressure on the pair.
About news:
The Fed chose to leave its current benchmark policy rate unchanged at 5.5% during its meeting held on Wednesday.
The central bank is expected to attempt additional interest rate hikes in 2023
As a result, Fed officials unexpectedly adjusted the expected interest rate for 2024, increasing it from 4.6% to 5.1%, contributing to supporting the strengthening of the US Dollar (USD).
The US Dollar Index (DXY), which measures the Greenback's performance against six other major currencies, extended gains and traded at a six-month high of around 105.50 at the time of writing. . Additionally, higher US Treasury bond yields help the dollar strengthen.
Technically:
Looking at the technical picture on the H4 time frame we can see that the pair has returned to the lowest support level of 1.2303 USD, which is expected to increase in the short term.
We need to keep an eye on the upcoming data release from the United States (US) on Thursday to provide further direction for the pair.
About news:
The Fed chose to leave its current benchmark policy rate unchanged at 5.5% during its meeting held on Wednesday.
The central bank is expected to attempt additional interest rate hikes in 2023
As a result, Fed officials unexpectedly adjusted the expected interest rate for 2024, increasing it from 4.6% to 5.1%, contributing to supporting the strengthening of the US Dollar (USD).
The US Dollar Index (DXY), which measures the Greenback's performance against six other major currencies, extended gains and traded at a six-month high of around 105.50 at the time of writing. . Additionally, higher US Treasury bond yields help the dollar strengthen.
Technically:
Looking at the technical picture on the H4 time frame we can see that the pair has returned to the lowest support level of 1.2303 USD, which is expected to increase in the short term.
We need to keep an eye on the upcoming data release from the United States (US) on Thursday to provide further direction for the pair.
