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GBP/USD Price Forecast: Trades vulnerably near 1.3300 ahead of Fed-BoE policy

July 28, 2026

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GBP/USD reflects caution at around 1.3300 in the countdown to the Fed’s policy.
Both the Fed and the BoE are expected to leave interest rates steady.
The CME FedWatch tool shows a meaningful chance of an interest rate hike by the Fed in September.

The British Pound (GBP) trades with caution at around 1.3300 against the US Dollar (USD) during the European trading session on Tuesday. The GBP/USD pair is marginally higher, but is broadly under pressure, with investors turning cautious ahead of the Federal Reserve’s (Fed) monetary policy announcement on Wednesday.

Investors expect the Fed to leave interest rates unchanged in the range of 3.50%-3.75% and warn of upside inflation risks. However, United States (US) President Donald Trump said on Monday that Fed Chairman Kevin Warsh should lower interest rates, adding that there was a good inflation report recently, costs were falling rapidly, and that prices should drop significantly once the Gulf War ends.

On the contrary, the CME FedWatch tool reflects traders seeing the monetary policy adjustment on the hawkish side. There is an 80.8% chance that the Fed will deliver an interest rate hike in September, the tool shows.

This week, investors also await the Bank of England’s (BoE) monetary policy announcement on Thursday, in which it is expected to keep interest rates steady at 3.75%, with a 7-2 majority.

GBP/USD technical analysis

GBP/USD trades marginally higher at around 1.3300, but is holding a bearish near-term bias as it remains capped beneath the 20-period Exponential Moving Average (EMA) at 1.3358 and below the broader descending resistance trend line that projects from the 1.3862 area.

The Relative Strength Index (14) near 43 stays below the midline, hinting that downside pressure persists rather than signaling an oversold condition, while the pair consolidates closer to underlying trend-line support than to the overhead resistance cluster.

On the topside, initial resistance is located at the 20-day EMA around 1.3360, with further supply expected near the prior resistance trend-line break zone at 1.3487. On the downside, the market finds structural support around the horizontal support of the Descending Triangle formation, where a sustained break would likely open the door to the psychological level of 1.3000.