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GBP/USD stays firm above 1.3479 ahead of US CPI

Sterling’s recent strength comes as Fed-hike odds are split ahead of US CPI, with FedWatch pricing a 48.1% chance of a 25-bps move for September.

Reported · Written up by our desk · Major Pairs

Sterling has been among the best-performing major currencies versus the US dollar over the past five trading sessions, with the USD/GBP cross rate down 0.38% in that period. That contrasts with USD/CAD, which also fell by 0.56% over the same window, according to Action Forex’s market snapshot.

Action Forex links the near-term direction of GBP/USD to inflation expectations, with investors focused on whether upcoming US CPI changes the outlook for further Federal Reserve tightening later this year. After mixed labor-market signals, pricing for the September FOMC decision is close to even, with CME FedWatch indicating a 48.1% chance of a 25-bps hike, down from around 70% a week earlier.

Technically, Action Forex says GBP/USD cleared a medium-term level after the US NFP release on 7 August 2026, when it broke above a former descending trendline resistance tied to the 28 January 2026 high and 52-week high. The pair is also holding within a minor ascending channel since the 29 July 2026 low of 1.3279, with the publication pointing to bullish momentum on the hourly RSI.

Action Forex flags 1.3479 as the key short-term support to watch, arguing that holding above it supports a bullish bias toward resistances near 1.3547, 1.3580, and 1.3643. A failure to hold, defined as an hourly close below 1.3479, would invalidate the bullish sequence and open the way for a corrective move toward supports at 1.3440 and 1.3400.

Latest closeGBP/USD 1.322 ▼0.9%

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