GBP/USD Price Analysis: Consolidates above 1.2100 ahead of Fed, BoE decisions

• GBP/USD maintains its position ahead of the central banks’ policy decisions.
• The pair faces tepid momentum suggested by the MACD.
• Immediate support emerges at 1.2000; key resistance at 14-day EMA at 1.2162.

GBP/USD hovers around the 1.2120 level with a negative tone during the Asian session on Monday. The pair moves sideways ahead of the policy meetings of the US Federal Reserve (Fed) on Wednesday and the Bank of England (BoE) meeting on Thursday.

The GBP/USD pair could find immediate support at the 1.2000 psychological level. A firm break below the level could open the doors for the pair to navigate the region near the monthly low at 1.2037 level.

On the upside, the 1.2150 appears to be the key barrier aligned with the 14-day Exponential Moving Average (EMA) at 1.2162, following the 1.2200 major level. A firm breakthrough above the latter could support the GBP/USD pair to explore the area around the 23.6% Fibonacci retracement at the 1.2298 level.

The Moving Average Convergence Divergence (MACD) line persists below the centerline but stays above the signal line, suggesting a tepid momentum for the GBP/USD pair.

Moreover, The GBP/USD duo seems to be experiencing a subdued momentum, and the 14-day Relative Strength Index (RSI) is indicating a clear tilt toward weakness. The technical indicator, dipping below the 50 level, signals a potential bearish momentum.

GBP/USD: Daily Chart