GBP/USD- the pair with the most to gain or lose this week?

As noted here previously, the Fed and the BOE monetary policy decisions are in the spotlight for the markets on Wednesday and Thursday. That means the potentially most impacted FX instrument by these two very important outcomes could be the one that is most directly linked to both of them. That is of course the GBP/USD. This simply has to be in the spotlight most of all this week. Now of course there are numerous permutations on how these Central Bank decisions will play out relatively and I am not going to cover those here. I will leave you to work that out for yourself. The GBP/USD has really come back from its rebound high this year. That saw the GBP/USD reach 1.3142 on July 14, after basing out at 1.0350 on September 26 last year. So, if we take that range and then look at longer-term support levels, we see that first significant one of those is still some way off, at 1.2075 (38.2% retracement of that whole move). That leaves some leeway for a further downside from the current levels, IF that is the direction the markets want to take. There will be more to add on this over the next couple of days. The GBP/USD is just now a little lower from earlier levels, currently trading at 1.2388