GBP/USD falls as Fed holds rates steady, Powell to stay at Fed

The Fed held rates steady at Jerome Powell’s final meeting, prompting a stronger USD and pushing GBP/USD down about 0.30 to trade near 1.3480 as markets await Powell’s press conference. The pair hit a daily low of 1.3467 and touched the 100-day SMA—a technical level whose breach could open the way toward the 1.3400 psychological support, while a dovish pivot from Powell could see 1.3500 tested. The Fed signaled the economy remains resilient, noted elevated inflation partly from higher energy prices tied to the Iran conflict, and passed the decision in an 8–4 vote. Market focus is on Powell’s remarks for further guidance on policy bias and USD direction, with knock-on effects across major FX pairs.