Sideways Awaiting CPI Data and Fed Rate Decision

6 days agoGBP/USD is currently showing a clear sideways phase, with charts indicating a lack of clarity between key resistance and support levels.

The pair has also tested key support levels at 1.2900, an area that has supported previous rallies. The 0.618 Fibonacci level, a technical analysis tool often seen as a potential turning point for reversals, was also mentioned, highlighting its importance in identifying further support levels.

In addition, the chart also shows a zigzag pattern, suggesting that traders are weighing the latest macro news and economic data, which could trigger significant price movements. This also reflects the current uncertainty in the market, as investors await upcoming economic reports, including US CPI data, for further clues on the next direction of monetary policy and its impact on the pound.