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GBP/USD Treads Water Below 1.3500 as Traders Await Key Economic Releases

Guavy AI Editorial Team
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USD JPY GBP
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The British Pound (GBP) has been trading in a tight range below 1.3500 against the US Dollar (USD) on Tuesday, struggling to build on its modest gains from the previous day.

The USD selling remains subdued, particularly due to the Japanese Yen's (JPY) strength, but firming Federal Reserve rate hike bets and escalating tensions between the US and Iran are acting as a tailwind for the dollar, capping the GBP/USD pair.

Traders seem cautious ahead of this week's key releases, including the UK GDP figures and US inflation data.

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