The pair trades near 1.3570 as the US Dollar gains amid geopolitical risks and ahead of key US inflation data.
The GBP/USD pair fell 0.3% to 1.3570 in European trading on Tuesday, pressured by a stronger US Dollar. Risk aversion drove demand for the Greenback after reports of escalating US-Iran tensions, with S&P 500 futures down 0.2% near 7,395.
The US Dollar Index (DXY) rose 0.25% to 98.15, outperforming peers as investors sought safety. Markets await April’s US Consumer Price Index (CPI) data at 12:30 GMT, with headline inflation expected to accelerate to 3.7% YoY from March’s 3.3%.
UK GDP data for Q1 is due Thursday, with growth forecast at 0.6%, up from 0.1% in the prior quarter. Technical resistance for GBP/USD remains near the 61.8% Fibonacci retracement at 1.3600.