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The GBP/USD pair has seen renewed buying interest during the Asian session, halting its decline from a one-week high of 1.3485 and trading near 1.3430, up 0.10%. The pair's resilience reflects the USD's weakness amid expectations of dovish Federal Reserve policy, while the GBP benefits from improved risk appetite. Traders are now focused on the upcoming US CPI data, which could determine the USD's near-term direction and GBP/USD's potential to test key resistance levels. The GBP/USD movement is critical for forex traders as it highlights the USD's vulnerability against major currencies. A weaker USD often strengthens the GBP, especially with UK inflation showing signs of easing. The market's anticipation of the US CPI report adds volatility, as data surprises could trigger sharp moves. For Gulf investors, the GBP's performance is relevant given its role in regional trade and investment flows. Looking ahead, the GBP/USD may find support around 1.3400 and resistance at 1.3500. A break above 1.3500 could signal a bullish trend, while a drop below 1.3400 might reignite bearish sentiment. Traders should monitor the US CPI report on Thursday for clues about Fed policy and USD strength. Broader market risks, including geopolitical tensions and oil price fluctuations, could also impact the pair.
