GBP Strengthens Amid Selling Pressure on USD

The British Pound (GBP) gained 0.2% against the US Dollar (USD), reaching near 1.3557 during European trading on Wednesday.

This upward movement is partly due to selling pressure on the US Dollar, which is experiencing a decline in Federal Reserve interest rate hike bets following weak United States economic data for August.

Analysts at ING highlight that investors are awaiting the publication of the Federal Open Market Committee (FOMC) minutes from the July policy meeting, scheduled to be released at 18:00 GMT. While they expect a few hawkish references in the minutes, which could nudge the Dollar and short-dated rates slightly higher, they do not anticipate significant changes.

The GBP/USD pair maintains a bullish near-term bias as it holds above the 20-day exponential moving average (EMA) at 1.3475 and the former resistance trend line around 1.3436. The Relative Strength Index (14) near 64 indicates sustained upward momentum without reaching extreme overbought conditions.