• 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


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