GBP/USD Price Forecast: Holds steady to near 1.3600, with bullish bias intact above 100-day SMA
The GBP/USD pair steadies around 1.3590 during the early European session on Friday. Traders pared expectations for an interest rate hike by the Bank of England (BoE) this year and shifted their attention to the annual symposium on monetary policy at Jackson Hole in the US later on Friday.
Traders await the Federal Reserve (Fed) Chair Kevin Warsh’s speech at the Jackson Hole symposium for clues on his policy outlook. This event could provide more clarity on his outlook for the US economy, interest rate outlook, and how the US central bank will bring inflation back to the Fed’s 2% target. Any hawkish comments from Fed officials could help limit the Greenback’s losses in the near term. Read more…
British Pound edges higher despite delaying BoE rate hike expectations
GBP/USD inches higher after two days of losses, trading around 1.3600 during the Asian hours on Friday. However, the British Pound (GBP) may encounter headwinds as recent declines in Brent crude oil prices ease immediate inflation concerns. This shift has led money markets to push back expectations for the Bank of England’s (BoE) next interest rate hike from late 2026 into early 2027.
According to LSEG pricing data, financial markets reflect just 24 basis points of policy tightening by December and 36 basis points by February 2027. Ahead of the BoE’s September meeting, less than 4 basis points are priced in, translating to roughly a 15% probability of a rate increase. Read more…
