Following the ECB interest rate cut and restart of QE last week, the Fed’s interest rate cut yesterday, this morning’s Bank of Japan and SNB decision to keep interest rates unchanged, the Bank of England’s interest rate announcement is expected to show no change. With wage pressures accelerating, the British central bank is likely to remain on the sidelines which will support a stronger British Pound moving forward. Can the rally in the GBPUSD extend as monetary policies between the US and the UK diverge or is price action going to partially reverse its advance? Subscribe to the PaxForex Daily Fundamental Analysis now and let our expert analysts guide you through the forex market yielding over 5,000 pips per month in profits!

Forex traders will get a series of US economic reports today after the US central bank cut interest rates by 25 basis points, as expected, to a range between 1.75% and 2.00%. A regional business reports is expected to show a slowdown while exiting home sales are called lower with a contraction in leading indicators. Will this set of data deliver as expected and what does this mean for the GBPUSD? Today’s fundamental analysis will take a look at the downside potential in this currency pair and also explore the upside risk.