GBP/USD Tests Key Support as Fed Expectations Support the dollar.

GBP/USD remains under pressure. The stronger dollar has been supported by rising Treasury yields, safe-haven demand linked to Middle East tensions, and growing market expectations of another Fed rate hike by year-end. While the Bank of England remains concerned about inflation and may maintain a relatively hawkish stance, slowing UK economic growth has limited support for the pound.

Overall, the fundamental outlook favours the U.S. dollar in the near term. Unless upcoming U.S. CPI data weakens significantly or the Federal Reserve adopts a less hawkish tone, GBP/USD could remain under pressure.

Technically, GBP/USD remains under pressure while trading below the 200 & 50 DMA. The pair is currently holding above important support around 1.3300, which remains the main level to watch in the near term. A break below this support area could expose 1.3180. On the upside, the major resistance zone is 1.3480-1.3500.

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