GBP/USD Stabilizes Near Support as BoE Hike Odds Rise and Fed Decision Looms

The GBP/USD pair has been showing signs of stabilization near support levels as traders prepare for the release of UK inflation data and the Federal Reserve's decision.

Expectations are rising that the Bank of England (BoE) will hike interest rates later this year, which could boost the pound. A hot UK CPI report or a disappointing Fed decision could further strengthen sterling.

The BoE currently has a 43.2% chance of hiking interest rates in November, with December being favored at 90.8%. However, yesterday's labor market report showed slower private-sector wage growth and higher claimant counts, which may reduce concerns about a renewed wage-price spiral.