GBP/USD in the spotlight this week as Fed and BOE policy decisions loom

The GBP/USD could be very much in the spotlight later this week. That is because we have both sides of that pairings Central Banks due to decide on monetary policy. The Fed decision will be released at 7pm GMT on Wednesday, with the Bank of England due the next day, at 12pm GMT. So, depending on what emerges from both those decisions, it could determine whether or not the GBP/USD will make a bolder move or stall again ahead of 1.2800. The prospect of the Fed making a clearer statement on rates and one that leads the markets to really gun for a rate cut in March could be the first side of the coin. If the BOE subsequently decides to dig its heels in again and reject any notion of a cut in the foreseeable future, that could be the other. Of course there is no guarantee on any outcome here this week, but the potential is there for the Pound to grab the focus of attention. There will be much more to add on this over the next couple of days. The GBP/USD closed in the US on Friday at 1.2708. It has traded a range covered so far today by 1.2691 to 1.2710. It is currently trading at 1.2709