Forex trading. Pound/Dollar GBP/USD forecast for today, Seprember 23, 2021
The British currency fell against the US dollar to the level of 1.3630. The quotes reached another local low after the US Central Bank announced three possible rate hikes in the near future. Market participants continue to buy the dollar in anticipation of a tightening of monetary policy in the United States in the near future. At the same time, the Fed did not announce a specific time frame for reducing the purchase of securities, so the strengthening of the dollar was not unnecessarily strong.
A meeting of the Bank of England will be held today. Most likely, following the meeting, the pound will be under some moderate pressure, but the fall is unlikely to be deep. The British regulator, like the Fed, is moving towards tightening monetary policy. Markets assume that the reduction of the quantitative easing program will begin this year. If the Bank of England is more determined, unlike the US Central Bank, the pound has a good chance to recover to the resistance level of 1.3700. Otherwise, the drop in quotes will continue to the support of 1.3600. The demand for risky assets is currently low, so the Bank of England will have to surprise traders to restore demand for the British currency.
The forecast assumes a decline in the pound/dollar exchange rate to the price values of 1.3600, 1.3580 and 1.3560.