GBP/USD Struggles at Three-Month Lows Amid Fed Rate Hike Expectations

The GBP/USD pair remains under pressure at three-month lows as investors favor the US dollar amid growing expectations of a Federal Reserve rate hike in October. The Bank of England is not expected to change policy until November, and high oil prices are supporting the US dollar.

Market estimates suggest an over 80% chance of a 25 basis point Bank of England rate hike in November, but weak growth in the British economy may limit the central bank's ability to tighten aggressively. Deputy Governor Dave Ramsden has stated that he would support further rate hikes if inflationary pressures persist.

Technically, the pair remains bearish below the 1.3232-1.3238 resistance zone, with a continuation of the decline towards 1.3175, 1.3127, and potentially 1.3081 likely in the near term.