GBP/USD continues to hold below June 2022 high following Fed

3 พ.ค. 2023

GBP/USD continues to hold below the June 2022 high (1.2617) following the Federal Reserve interest rate decision, with the central bank delivering another 25bp rate hike while taming speculation for lower interest rates ahead of 2024.

GBP/USD Rate Outlook

GBP/USD registered a fresh yearly high (1.2590) as it retraced the decline from the start of the week, but failure to test the June 2022 high (1.2617) may lead to another pullback in the exchange rate.

Lack of momentum to hold above the weekly low (1.2436) may push GBP/USD towards the 1.2280 (23.6% Fibonacci extension) to 1.2340 (23.6% Fibonacci extension) region, which lines up with the 50-Day SMA (1.2279), with a move below the April low (1.2275) opening up the 1.2030 (38.2% Fibonacci extension) region.

At the same time, GBP/USD may face range bound conditions if it continues to hold above the April low (1.2275), and it remains to be seen if the exchange rate will track the positive slope in the moving average as the Relative Strength Index (RSI) remains below overbought territory.

--- Written by David Song, Strategist