Ella 
GBP/USD remains on the defensive during early Asian trade on Wednesday. The major pairs are facing resistance near the 1.2200 mark. Market participants await the high-profile Federal Open Market Committee (FOMC) policy meeting on Wednesday, followed by the Bank of England (BoE) meeting on Thursday. These events may trigger market volatility. GBP/USD is currently trading around 1.2139, down 0.11% on the day.
The two-day FOMC policy meeting begins today and will conclude later Wednesday. The FOMC is expected to keep rates on hold at its November meeting. Traders will be closely watching FOMC Chairman Jerome Powell’s press conference for fresh impetus. If the FOMC sends a hawkish message, the US dollar may attract some buyers and put pressure on the GBP/USD pair.
On the other hand, the Bank of England (BOE) is expected to hold interest rates steady at 5.25% at its November meeting on Thursday amid growing concerns about a UK recession. After the meeting, Bank of England Governor Andrew Bailey is likely to give some hints on the latest forecasts for the British economy and the future of monetary policy.
Weak UK data and stubborn inflation are weighing on Sterling (GBP) and bearish for the GBP/USD pair. In addition, rising geopolitical risks in the Middle East may drive safe-haven flows, benefiting the U.S. dollar.
Ahead of Wednesday’s FOMC meeting, investors will take cues from the U.S. ADP jobs report, JOLTS job openings and the ISM manufacturing PMI. On Thursday, the Bank of England interest rate decision and a speech by Bank of England Governor Bailey will be in focus. U.S. employment data will be released on Friday, including October nonfarm payrolls and average hourly earnings.
