Sterling was marginally firmer near 1.3300 against the US Dollar in European trading on Wednesday as the greenback eased before the Federal Reserve\u2019s policy decision at 18:00 GMT. The Dollar Index (DXY) slipped towards 101.30, while markets weighed the likelihood of another hold after four straight meetings without a change. CME FedWatch put the probability of rates staying in the 3.50%\u20133.75% range at 69.5%, with attention also on the policy statement and Chair Kevin Warsh\u2019s press conference for guidance on inflation and the outlook, including the impact of military aggression in the Middle East.<\/p>\n
Focus then turns to Thursday\u2019s Bank of England decision, where rates are expected to remain at 3.75% on a 7\u20132 vote. <\/p>\n
In price action, GBP\/USD stayed under the 20-day EMA at 1.3353 and below a former downtrend line near 1.3489, keeping the near-term bias tilted lower. The 14-period RSI sat around 44, with additional levels in view: a late-June low in the mid-1.31s, a mid-July high in the mid-1.35s, support at 1.3250 and resistance at 1.3350, while the RSI was flagged as threatening a move below 40.<\/p>\n\n\n\n