Following a stunning week, the Pound Sterling (GBP/USD) corrected sharply against the US Dollar (USD), bringing GBP/USD back under the psychological level of 1.3000. In the coming week, the pair will be looking for a fresh directional impetus from the US Federal Reserve (Fed) monetary policy decision and top-tier economic data from the US.

The upcoming week will see a slew of key event risks from the United States, while the United Kingdom’s economic calendar will be relatively light.

On Monday, GBP/USD flows will be dominated by preliminary S&P Global Manufacturing and Services PMI reports from both sides of the Atlantic. However, aside from the US Conference Board Consumer Confidence index, there isn’t much data to look forward to on Tuesday.

Wednesday is critical because the Federal Reserve will announce its interest rate decision, followed by a press conference by Chair Jerome Powell. The Fed’s outlook on interest rate hikes and inflation will be critical in determining the next direction of the US Dollar and the GBP/USD pair.

Our Expectation

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