The ceasefire in the Ukraine-Russia peace talks was halted by a failure to reach an agreement.

The US President Biden and China’s Xi discussed Russia РUkraine.

Fed’s Bullard and Waller crossed the wires.

USD/GBP Price Forecast: This bias will be downwards unless the GBP bulls recover 1.3300.

After the Bank of England (BoE) decided to raise borrowing costs for the third consecutive time in the same number of policy meetings since December 2021, the GBP/USD saw some of its previous weekly losses disappear. GBP/USD trades at 1.3176 as of the writing.

Wall Street closed the week with gains reflecting an increase in risk appetite. The peace talks between Russia, Ukraine and other countries would continue. However, the conflict has not allowed for both sides to come to an agreement that could lead to a ceasefire or truce.

Late in the New York session, President Biden of the United States and President Xi Jinping of China held a reunion videoconference. China addressed the US about its position on the Russia-Ukraine conflict. Xi, the Chinese President, stated that the invasion was “not something we want” and that “the recent events once again show that countries shouldn’t get to the point where they can meet on the battlefield.”

The Fed speakers began to parade after the Federal Reserve raised rates Wednesday by 0.25%, for the first time in three year.

Bullard, the St. Louis Fed President, was the first to leave the wires. He wanted the Fed’s balance sheet to be reduced and a 50 basis point increase. Fed’s Waller said that the US central banking should consider a 50-bps rate increase at some point. He also stated that QT will begin in July.

Mid-day, Neil Kashkari, President of Minnesota Fed, stated that the central bank should immediately begin to reduce its balance sheet.

GBP/USD Forecast: Technical outlook

Overnight, GBP/USD fluctuated in a middle-size range, 1.3110s to 1.3200. However, as the New York session ended, cable stabilised around 1.3176.

The GBP/USD bias has fallen as the daily moving averages are higher than the exchange rate. Cable has been able to trade within the lower limits of the descending channel but it is still vulnerable unless the USD/GBP pair reaches the 1.3300 mark. A GBP/USD move up to the 1.3415-40 region, where the 50- and 100-DMA’s are, is possible if that scenario occurs. The path of least resistance is down.

GBP/USD’s first support would be December 8, 2021 at 1.3160. Brute of this would expose November 13, 2020 at 1.3105. The GBP/USD would then be supported by the bottom-trendline in the descending channel at 1.3040, just ahead of the mark of 1.3000.