No major events are expected today.

The pound remains near seven-week lows against the dollar following central bank decisions. The Bank of England kept its rate on hold, while the Fed raised its rate and left the door open for further tightening. This divergence supports the U.S. currency, despite expectations of a potential UK rate hike later this year.

The pound’s position is somewhat improved by strong retail sales data and UK economic growth in July. Lower oil prices also reduce the risk of a new acceleration in imported inflation. However, these factors may simultaneously weaken the need for an urgent rate hike by the Bank of England, so their impact on the British currency remains mixed.

The key driver of the current session is expectations of further Fed actions, while UK economic statistics fail to provide sufficient grounds for an independent rally in the pound. Ahead of the release of September PMI data, the market lacks new confirmations of the UK economy’s resilience. As long as dollar demand persists, a decline in GBP/USD remains the base-case scenario.

Recommendations: SELL 1.3370, SL 1.3400, TP 1.3290.