FxWirePro: GBP/USD hovers near four-year high ahead of key U.S. inflation data

• GBP/USD hovers near a four-year high    as investors awaited key U.S. inflation data and watched for developments on U.S. tariff negotiations.

• Sterling has firmed against dollars this week amid easing geopolitical tensions in the Middle East, renewed optimism over U.S.-China trade talks, and growing expectations of U.S. interest rate cuts..

• All eyes are on the upcoming U.S. PCE inflation data, a key indicator that could shape expectations for the Federal Reserve’s next move.

• The data will be especially critical as markets remain finely balanced between expectations of near-term rate cuts and a more prolonged pause.

• A softer-than-expected reading could reinforce the case for easing, while any upside surprise might prompt a reassessment of dovish Fed bets.

•   Immediate resistance is located at 1.3766(23.6%fib), any close above will push the pair towards 1.3795(Higher BB)

•  Strong support is seen at 1.3661(June 26th low) and break below could take the pair towards 1.3570(38.2fib).

  Recommendation: Good to buy around 1.3700 with stop loss of 1.3600 and target price of 1.3800