GBP/USD Struggles Near 1.3500 Amid Modest USD Uptick
The GBP/USD pair continues to trade with a negative bias for the second day in a row, but it lacks conviction and holds around the 1.3500 psychological mark during the Asian session on Monday.
Despite this, spot prices remain above Friday's swing low, prompting caution for bearish traders.
The US Dollar draws support from rising bets for an interest rate hike by the US Federal Reserve in September due to inflation risks stemming from higher energy prices and escalating US-Iran confrontations in the Strait of Hormuz, weighing on the GBP/USD pair.
However, USD bulls seem hesitant and are waiting for US inflation figures, due later this week, before making further moves.
The release of the monthly UK GDP report on Friday will also provide an impetus for traders.