Important events today:

18:00 UTC – US: Fed meeting.

The decline in quotations to the nearest support levels is advisable to use for opening Buy positions for two reasons. First, the U.S. Federal Reserve may raise the discount rate today for the last time this year by 0.25 p.p. to 5.25%, which is negative for the dollar. The Fed Funds rate futures, which trades on the Chicago SME exchange, show traders expect the rate to be 4.5% at the end of the year.

The Fed’s policy tightening cycle, which began last March, has helped reduce inflationary pressures in the U.S., so monetary authorities may end the policy tightening and move toward a rate cut in the second half of the year. Secondly, the market is again seeing demand for bitcoin, which is also positive for the pound, as the cryptocurrency often generates outperforming signals and has a strong inverse correlation with the U.S. dollar.

Recommendations: Buy 1.2448/1.2415 and TP 1.2525.