Pound falls to $1.3635, near six-month highs

Updated on August 26, 2026.

VERIFIED GBP/USD is trading at $1.3635 on August 26, 2026, down 0.10% from the previous session, according to Trading Economics. Over the past month the pound has strengthened 2.60%, and is up 0.97% over the last twelve months.

What is behind the move

HYPOTHESIS The pound is trading near its highest levels since mid-February, after touching a six-month high of $1.3675 last week, supported in part by dollar weakness following the US Treasury's unexpected decision to at least double its purchases of long-term government bonds. The Bank of England held its Bank Rate at 3.75% on July 30 by a 6-3 vote, and money markets are already pricing in another quarter-point hike before year-end; the next decision is on September 17. UK inflation accelerated to 2.9% in July, the highest since March, with core inflation at 2.6%. This is the reading circulating this week, not a fact independently verified by this site, according to FXStreet.

What this does not mean

HYPOTHESIS Markets are in a "wait-and-see" stance ahead of the US PCE inflation data and, above all, Federal Reserve Chair Kevin Warsh's first keynote at the Jackson Hole symposium this Friday: a hawkish surprise could quickly unwind the pound's recent gains. And trading near a six-month high does not confirm a breakout above the $1.3675 resistance: this week's forecasts place the range between $1.34 and $1.38, and the low volatility of recent sessions looks more like a pause than a confirmed breakout.

Sources consulted on August 26, 2026: Trading Economics: British Pound quote and statistics, FXStreet: Pound Sterling Price News and Forecast.

Educational notice: this article is analysis based on public data, may contain errors, and is not financial advice. It is not a recommendation to buy or sell. The decision and the risk are always the reader's own.