|

British Pound holds near 1.3500 as US CPI, UK GDP loom

  • GBP/USD steadies as traders await US CPI and UK GDP.
  • Oil retreats on Pakistan headlines, easing immediate inflation concerns.
  • Fed hike odds rise to 52% before inflation data.

The Pound Sterling (GBP) holds firm against the US Dollar (USD) on Tuesday following the release of softer-than-expected US jobs data, while investors await US inflation data on Wednesday and UK GDP releases on Thursday. At the time of writing, the GBP/USD pair trades at 1.3508, nearly unchanged.

GBP/USD steadies as traders await key inflation and growth data, Oil swings reshape Fed hike bets

Energy prices had remained high, but retreated on a Bloomberg headline that read “Pakistan Says US, Iran Close to Deal Despite Trump Rhetoric.” On the headline, the US crude benchmark West Texas Intermediate (WTI) retreated from daily highs near $84.69 to $82.50.

Traders are also waiting for the release of the US Consumer Price Index (CPI), with most participants expecting headline inflation to come in at 3.4% YoY in July, a tenth lower than in June, while core CPI is also forecast to drop by the same margin to 2.5% YoY.

By Thursday, the US economic calendar will unveil the Producer Price Index (PPI) and jobless claims, the first of which follows a disappointing July Nonfarm Payrolls report.

Across the Atlantic, in the UK, traders are bracing for the preliminary reading of the Gross Domestic Product (GDP) for the second quarter of 2026, with the economy expected to grow by 1.1% YoY. On a quarterly basis, a slowdown from 0.6% to 0.4% is projected.

Given the backdrop, GBP/USD price action remains contained as investors wait for economic data. However, money markets continued to update their expectations regarding a Fed rate hike in September, with the odds at 52% of a 25-basis-point rate hike, according to Prime Terminal data.

Source: Prime Terminal

Analysts cited by Reuters said the Pound has not been affected by the election of Andy Burnham as the UK’s new Prime Minister. They added, “Traders are not anticipating much in the way of moves ahead of Britain's budget scheduled for late October.”

GBP/USD Price Forecast: Technical outlook

Chart Analysis GBP/USD
GBP/USD daily chart

In the daily chart, GBP/USD trades at 1.3504, holding a constructive bias as it remains above the clustered Simple Moving Averages around 1.3367. The pair is testing an upward trendline pivot near 1.3504 while the Moving Average Triple (simple) beneath price hints at an underlying bullish structure, with the Relative Strength Index (14) at 60.4 reinforcing firm but not yet overbought upside momentum.

On the topside, immediate resistance appears at the 1.3508 area, where a downward sloping trend line and a previously supportive rising line converge, forming a tight cap just above spot. On the downside, initial support is seen at the reclaimed descending trend line around 1.3504, followed by the Moving Average Triple cluster near 1.3367, where a deeper pullback would be expected to attract fresh buying interest while the broader bullish tone remains intact above that zone.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Pound Sterling Price Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Swiss Franc.

USDEURGBPJPYCADAUDNZDCHF
USD0.03%-0.00%-0.05%-0.07%-0.12%0.00%0.10%
EUR-0.03%-0.03%-0.06%-0.09%-0.12%-0.02%0.07%
GBP0.00%0.03%-0.04%-0.07%-0.10%0.01%0.10%
JPY0.05%0.06%0.04%-0.03%-0.06%0.04%0.14%
CAD0.07%0.09%0.07%0.03%-0.02%0.07%0.16%
AUD0.12%0.12%0.10%0.06%0.02%0.11%0.20%
NZD-0.01%0.02%-0.01%-0.04%-0.07%-0.11%0.10%
CHF-0.10%-0.07%-0.10%-0.14%-0.16%-0.20%-0.10%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

Author

Christian Borjon Valencia

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

More from Christian Borjon Valencia
Share:

Editor's Picks

AUD/USD hits eight-month lows below 0.6850 amid bullish USD

AUD/USD stays defensive below 0.6850, hitting an eight-month low in the Asian session on Thursday as the possibility of a steeper Fed rate hike in December helps the US Dollar hold near its highest level since April 2025. Geopolitical uncertainty also supports the safe-haven buck, while the RBA’s cautious, on-hold stance limits the Aussie.

USD/JPY eases from near 160.00 amid looming intervention risks, BoJ hike bets

USD/JPY retreats slightly from an over two-month high as the recent surge back to the 160.00 psychological mark prompted verbal warnings from Japanese authorities and sparked fears of direct FX intervention. Moreover, data showed that Japan’s wholesale inflation picked up again in October, strengthening the case for a BoJ hike in December and lifting the Japanese Yen. However, a bullish US Dollar, bolstered by odds of a jumbo Fed rate hike in December, could cap the pair's downside.



Gold falls below $4,000 as traders weigh a half-point Fed rate hike

Gold (XAU/USD) slips back below $4,000 on Thursday, giving up most of last week’s gains as bets on more aggressive Federal Reserve (Fed) interest rate hikes lift the US Dollar (USD) to a fresh year-to-date high.

MSCI drops Strategy from indexes: What it means for Bitcoin

Strategy and Bitcoin (BTC) came under fresh pressure late Wednesday after MSCI finalized its decision to remove the Bitcoin treasury company from its global indexes, raising concerns about potential selling pressure on MSTR shares and its future Bitcoin purchases.

Why the US Dollar's rally isn't as strong as it looks

The US Dollar Index (DXY) is back at an 18-month high, but most of its climb since August is the Euro falling. Against a wider group of trading partners, the Dollar has gained half as much, and the Federal Reserve has raised rates once this year. The US Dollar Index, which measures the Dollar against six other currencies, is trading near 103.

What the US CPI headline doesn’t tell you about inflation

Brent crude has fallen about a third since mid-October on hopes the Iran war is ending, but diesel, freight and fertiliser costs haven't followed. Those costs reach US consumer prices in stages through 2027 and could keep inflation high after gasoline gets cheaper.