The pair retreats after failing to break key resistance, with traders eyeing US PCE data for Fed policy clues.
GBP/USD fell to fresh intra-week lows near 1.3620 on Wednesday after stalling at resistance around 1.3660. The pullback reflects subdued USD demand ahead of July’s US Personal Consumption Expenditures Price Index release later in the session.
Analysts anticipate the PCE data to mirror softer July CPI and retail sales figures, potentially reinforcing expectations for the Federal Reserve to maintain current rates. Focus also shifts to the Dallas Fed trimmed mean PCE and Cleveland Fed median PCE measures for underlying inflation trends.
Technical indicators suggest a cautiously bullish outlook, though failure to reclaim 1.3660 could trigger a deeper correction toward 1.3565. The daily RSI hovers near 65, while the MACD remains positive, signaling a fragile but intact uptrend.