The pair rises 0.1% as US inflation data eases concerns, but a 70% Fed rate hike probability limits upside momentum.
The GBP/USD pair climbed 0.1% to 1.3385 in Asian trading, recovering from Monday’s pullback below the weekly high of 1.3425. Softer US Core CPI data reduced inflation fears, weakening the USD and supporting the pair’s modest rebound.
Traders still price in a 70% chance of a Federal Reserve rate hike by year-end, while US-Iran tensions add support to the USD, capping further gains. Technical indicators show a bearish bias below the 200-period SMA on the 4-hour chart, with resistance at 1.3438.
The MACD histogram remains slightly positive, and the RSI hovers near 50, signaling weak demand but not enough to challenge key resistance levels.