# GBP/USD Takes a Hit as Fed Drama Erupts Amid UK Inflation Worries 🔥

GBP/USD slipped during North American hours. Markets jittery. The pair now sits at 1.3469, down 0.15% 📉

It briefly touched 1.3500 after hot UK inflation numbers came out. Then it fell back. Traders got spooked. Why? Some pretty wild accusations against Fed Governor Lisa Cook just dropped. FHFA Director Bill Pulte claims she doctored bank documents and property records for better mortgage deals. Possible criminal fraud, he says 🚨

The plot thickens. The Wall Street Journal says Trump told his people he might try to fire Cook over this mess. Not great for Fed independence, I'd say.

UK inflation's acting up again. July numbers show CPI jumped to 3.8% YoY from 3.6%. Core CPI matched at 3.8%. Services CPI hit a somewhat alarming 5% 📊

Kind of puts the Bank of England in a tight spot. They just cut rates to 4% by the skin of their teeth - a close 5-4 vote. They thought inflation would drop to 3.6% by December 2025. Seems that prediction might be shaky now. The market's not so sure about more rate cuts either. Chances for a December cut dropped from 50% to 42% 🌕

Looking at the charts, GBP/USD pulled back after briefly popping above the 50-day SMA at 1.3495. RSI still looks bullish, but its slope seems ready to cross the neutral line. Not entirely clear, but more downside might be coming.

Drop below 1.3450? Sellers might push to the 20-day SMA at 1.3409 and 100-day SMA at 1.3403. Rally above 1.3500? Buyers might eye that August 14 high of 1.3594, then the 1.3600 level 📈

Recent data shows the Pound's been strongest against the Kiwi dollar. But it's been weak against most major currencies this week. Down 0.61% against USD. The pair hit 1.3647 back in September 2025 - year's high point. Now we're at 1.3482 as of October 3, 2025 🚀