Important events today:

26.08 12:30 UTC: USD – QoQ GDP Growth Rate.

The pound maintains support from Bank of England expectations following a series of more resilient UK data and ongoing inflationary pressure. The market continues to price in the probability of a rate hike by the end of the year, while GBPUSD holds near six-month highs. This provides an advantage for the British currency, as long as new data does not force investors to noticeably revise their monetary policy expectations.

At the same time, the fundamental picture in the UK does not look completely straightforward. High government bond yields and concerns over funding budget initiatives constrain the pound’s upside potential, as borrowing costs increase market sensitivity toward the October budget. However, within the current session, these risks remain secondary to Bank of England expectations and recent economic resilience.

The US dollar enters the day without a strong directional movement, as market participants await the July PCE Price Index and fresh signals from the Fed. Since dollar momentum is currently limited and the pound retains its own supporting factor, the priority remains with a moderate upside in GBPUSD under the current backdrop.

Recommendations: BUY 1.3640, SL 1.3605, TP 1.3720.