EUR/USD and GBP/USD Consolidate as Traders Brace for Fed Decision

EUR/USD and GBP/USD are trading in narrow consolidation ranges as markets adopt a cautious stance ahead of the upcoming Federal Reserve policy decision. Both pairs had previously staged significant rallies, breaking above key resistance levels, but momentum has stalled as traders await clarity on the Fed's rate outlook. The euro and pound are holding recent gains but lack fresh catalysts to push higher in the near term. Market participants are closely scrutinizing any signals regarding the timing and pace of potential Fed rate adjustments, which will be critical in determining the next directional move for both pairs. The consolidation phase reflects broader uncertainty, with traders unwilling to commit to large positions ahead of the high-impact event. EUR/USD is currently trading within a tight range, with support and resistance levels defining the boundaries of the consolidation pattern. Similarly, GBP/USD is hovering near recent highs without committing to further upside. A dovish Fed outcome could reignite the rally in both pairs, while a hawkish surprise would likely trigger a sharp reversal favoring the US dollar.