GBP/USD Holds Below 1.3500 as Dollar Firms Ahead of UK GDP Release

The GBP/USD currency pair has been trading below the psychological level of 1.3500 due to the US dollar's firm stance, which is largely driven by expectations that the Federal Reserve may keep interest rates higher for longer.

As a result, traders are cautiously waiting for the upcoming release of UK GDP data, which is expected to show the state of the British economy in the last quarter. A stronger-than-expected reading could provide support for the pound, while a weak print might exacerbate losses.

The technical outlook suggests that GBP/USD is facing resistance near 1.3500, with support seen around 1.3450. The pair has been trading in a descending channel over the past few sessions, indicating bearish momentum in the short term.