British Pound consolidates above 1.3500 vs USD ahead of this week's UK data, Fed, BoE

The GBP/USD pair struggles to move beyond the 1.3500 level as it consolidates at the start of a new week. Traders are cautious and waiting for key monetary policy announcements from the US Federal Reserve and the Bank of England. The US inflation data released last week showed strong growth in the US economy, prompting speculation that the Federal Reserve might raise interest rates by 25 basis points.

Meanwhile, tensions in the Middle East, including attacks on Saudi Arabian targets and the diversion of an Iranian cargo ship, have led investors to seek the safety of the US Dollar, suppressing the GBP/USD pair. The British Pound, however, received a boost from the UK's better-than-expected GDP report, which showed a 0.4% growth in July.

Yet, traders are focusing on upcoming UK labor market data and CPI figures for further support. The GBP/USD pair is trading just below the 200-period Simple Moving Average at 1.3522 and the 38.2% Fibonacci retracement at 1.3516. A break above these levels could open the path to the 23.6% Fibonacci retracement at 1.3575 and eventually the cycle anchor near 1.3671.

On the downside, support can be found at the 50.0% retracement at 1.3468, with deeper levels at the 61.8% level at 1.3420 and the 78.6% retracement at 1.3352.