GBP/USD fell back below 1.3200 on Wednesday after near-term bullish momentum eased. Markets have piled into a one-sided risk appetite stance as investors hunker down for the long wait to an anticipated kickoff of a rate-cutting cycle from the Federal Reserve (Fed) in September.

UK economic data remains limited this week, leaving the Pound Sterling exposed to broad-market sentiment flows. US Gross Domestic Product (GDP) figures are slated to release on Thursday, but little movement is expected as markets have broadly priced in Q2 annualized GDP growth to hold steady near 2.8%.

US Personal Consumption Expenditure Price Index (PCE) inflation due on Friday remains the week’s key print, and investors are shuffling their feet while they wait for signs that inflation will continue to ease, or at least not rise, fast enough that the Federal Reserve (Fed) will be kept on rails to deliver a hotly-anticipated rate cut on September 18.

GBP/USD price forecast

GBP/USD gave up ground on Wednesday, retreating from fresh 29-month highs hit this week. Downside momentum remains limited for the time being, but bids have slipped back below the 1.3200 handle and bearish momentum has plenty of room to run with price action trading well north of the 200-day Exponential Moving Average (EMA) at 1.2695.

GBP/USD daily chart

(Click on image to enlarge)

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