GBP/USD fell back below the 1.2900 level as markets pivot into the Greenback. Looming BoE rate cut provides little support for Cable. Fed due to deliver another rate cut in lockstep with BoE. The Bank of England and the Federal Reserve are both due to deliver matching quarter-point rate cuts on Thursday. The US presidential election still isn’t over, and some key battlegrounds will take some time before a final call is made.
In the event of a bounce from the 200-day EMA, the bulls would need to reclaim the 50-day EMA at 1.3038 to shift the short-term bias back to bullish. A close above this level could invite further buying interest, potentially targeting the recent high around 1.3300. However, with the recent bearish crossover in the MACD and price action failing to sustain above 1.3000, the path of least resistance appears to be downward. Traders should monitor the 1.