GBP/USD Hits Month-Low as Fed Rate Hike Fears Weigh

The GBP/USD currency pair has hit its lowest level in nearly a month as investors remain cautious about the economic outlook. The pair is currently trading at 1.3283, with technical analysis indicating a downward move towards 1.3260 and potentially 1.3190.

The US dollar has been supported by expectations of a potential Federal Reserve rate hike, which has led to a decline in GBP/USD. The suspension of US strikes on Iran has also contributed to lower oil prices and eased inflationary pressures.

However, the market remains cautious due to geopolitical developments, particularly in the Middle East. Attention will shift to the Bank of England's decision on Thursday, where rates are expected to remain unchanged at 3.75%, supported by softer UK inflation data.