British Pound seems vulnerable near two-month low as USD bulls eye US PCE and GDP
The GBP/USD pair enters a bearish consolidation phase during the Asian session on Wednesday, trading just above a two-month low, around the 1.3200 mark, touched the previous day.
The GBP/USD pair finds itself in a bearish consolidation phase, hovering near a two-month low of 1.3200. Traders are awaiting key US macroeconomic releases, including the Personal Consumption Expenditures (PCE) Price Index and the final Q2 GDP report, to gauge the Federal Reserve’s policy path. The strong USD and concerns over inflation, driven by rising US bond yields, are currently hindering any potential recovery for the GBP/USD pair.
Geopolitical tensions between the US and Iran, coupled with US President Donald Trump's dismissal of a ceasefire proposal, further weigh on the British pound. A break below 1.3200 could signal a descent towards the year-to-date low near 1.3140, with further downside possible. Conversely, a recovery would likely face resistance around the 1.3300 level before potentially rebounding to the 200-day Simple Moving Average (SMA) of 1.3448.
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