GBP/USD Weakens as Fed's Hawkish Stance Weighs on the PoundGBP/USDOANDA:GBPUSDNouzTraderGBP/USD GBPUSD recovered some of Friday's sharp losses—which had briefly touched a one-week low—and traded with a slight rebound just below the 1.3550 level throughout Monday's Asian session. --------------------------------------------------------------------------------------------------------------- ✅ Transatlantic Monetary & Fiscal Dynamics: UK Autumn Budget Discipline vs. Fed September Rate Hike Interest rate and fiscal policy dynamics between London and Washington present two opposing forces: - UK Fiscal Discipline ahead of the October 28 Budget: The Pound Sterling (GBP) has found moderate support from UK Chancellor John Healey’s emphasis on fiscal discipline as a top priority for the Andy Burnham administration ahead of the Autumn Budget release on October 28, 2026. - ⚡BoE vs. Fed Rate Outlook: Market participants have pushed back expectations for the next Bank of England (BoE) rate hike to 2027 (shifting from late 2026). Conversely, hawkish remarks by Fed Chair Kevin Warsh at Jackson Hole last Friday have fueled market speculation regarding a Fed rate hike (+25 bps) at the September 2026 FOMC meeting. - ⚡Focus on US NFP Data This Week: Markets are refraining from taking aggressive directional positions ahead of Friday's US Nonfarm Payrolls (NFP) data release, which is expected to provide a fresh catalyst --------------------------------------------------------------------------------------------------------------- ✅4-Hour Technical Analysis Technically, on the 4-hour (H4) chart, GBP/USD remains trapped within a neutral consolidation zone: - ⚡Intraday Resistance (1.3559 - 1.3579): GBP/USD upside is capped by the 1.3559 level and the 23.6% Fibonacci retracement at 1.3579. A clean break above 1.3579 is required to restore bullish momentum. - ⚡Critical Support (1.3521 - 1.3474): Initial support rests at the 38.2% Fibonacci level (1.3521). A break below 1.3521 would drag the spot price down to test the structural base at the 50% Fibonacci level (1.3474) through to the 61.8% Fibonacci level (1.3427).