GBP/USD Under Pressure as Dollar Strength Limits Upside

GBP/USD is under slight pressure after UK inflation came in at 3.00%, which was expected and unchanged. Inflation is slowly stabilising, and this has increased expectations that the Bank of England may consider rate cuts in the future. This is weakening support for the pound.

At the same time, the US dollar remains strong because the Federal Reserve is expected to keep interest rates higher for longer, and safe-haven demand is also supporting the dollar. This policy difference is keeping pressure on GBP/USD.

From a technical view, the earlier downtrend is becoming weaker, but there is still no clear bullish trend yet. Indicators like RSI near 50 and MACD near zero show the market is moving sideways.

Key levels to watch are 1.35079 resistance, 1.34405 range level, and 1.33035 support. A move below 1.33035 could bring stronger selling pressure. The price is already below the previous support of 1.33500. Long upper wicks on the weekly candles suggest increasing bearish pressure.

GBP/USD Daily Chart

Overall, GBP/USD is sideways to slightly bearish in the short term, while dollar strength continues to limit upside moves.