Market Fundamental Analysis for August 24, 2026 GBPUSD
GBPUSD:
The UK economy continues to show signs of resilience despite mixed data in recent days. The preliminary services PMI rose to a six-month high of 52.8 in August, while consumer confidence reached a two-year high. This reduces the risk of a sharp deterioration in domestic demand and provides support for the pound.
UK inflation accelerated to 2.9% in July, remaining above the Bank of England’s target. At the July meeting, three of the nine committee members had already voted for a rate increase, while the market continues to price in the possibility of tighter policy before the end of the year. A 0.5% decline in retail sales and an unexpected budget deficit are limiting factors for sterling, but they do not yet change the broader picture.
Trading idea: BUY 1.3650, SL 1.3610, TP 1.3740
