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The British pound remained stable against the US dollar as traders adopted a cautious stance ahead of the Federal Reserve's upcoming decision. GBP/USD hovered near 1.1350 during Asian trading hours on Wednesday, following two consecutive sessions of gains. The lack of significant movement reflects market anticipation of the Fed's policy outlook, which could impact USD demand and GBP/USD dynamics. The flat performance of GBP/USD highlights the importance of central bank decisions in shaping currency markets. Traders are closely monitoring the Fed's potential rate adjustments, which could influence USD strength and cross-currency flows. A dovish or hawkish stance from the Fed may trigger volatility in GBP/USD, especially if the decision diverges from market expectations. For global investors, the upcoming Fed meeting represents a key event with potential ripple effects on forex liquidity and risk appetite. Gulf investors should watch for any shifts in USD momentum, as a stronger dollar could pressure oil prices and impact regional trade balances. The GBP/USD pair remains a focal point for technical traders assessing support/resistance levels ahead of the Fed's statement.
