Cable

Sterling found support after UK annual inflation accelerated to 3.5% in September 2026, reinforcing expectations that the Bank of England will raise rates at its upcoming meeting. Traders are also watching the 28 October budget, the Federal Reserve meeting, and key GBP/JPY levels as volatility risks build.

UK annual inflation rose to 3.5% in September 2026, strengthening expectations that the Bank of England will lift rates at its upcoming meeting. Traders are also watching the 28 October budget, the Fed decision and key GBP/JPY technical levels as volatility risks build.

GBP/USD has moved into a decisive technical zone after quieter late-week trading, with resistance around 1.3274 and support near 1.3200 drawing attention. Dollar strength, elevated Treasury yields and expectations for further Federal Reserve tightening remain central to the pair’s next move.

The US dollar remained close to familiar levels after July inflation data matched consensus across headline and core measures. Softer jobs data and another decline in inflation have pushed more hawkish Federal Reserve expectations out of immediate focus.

The US dollar remained broadly steady after July inflation data landed in line with market expectations, limiting volatility across major markets. Softer jobs momentum and another cooling inflation reading have pushed more hawkish Federal Reserve expectations into the background for now.

GBP/USD remains trapped between 1.3400 and 1.3500, with US Dollar softness offering support but nearby technical levels limiting momentum. Friday’s US jobs, earnings and unemployment data could decide whether cable finally breaks higher or keeps rewarding short-term range traders.