GBP/USD bulls challenge the 1.3600 handle as US Dollar retreats from highs

All eyes on Bank of England’s Super Thursday.
The US dollar is on the back foot as the US withdrawal from the Iran nuclear deal weighs on the greenback.
The core US Producer Price Index (PPI) came in below expectations at 2.3% in April.

Flavio Tosti Independent Analyst

The GBP/USD is trading at around 1.3593 up 0.34% on Wednesday as investors are slowly unwinding their short GBP/USD positions ahead of the Bank of England rate decision and quarterly Inflation Report on Thursday.

Cable bulls gathered some momentum and managed to orchestrate a counter-trend move from the 1.3500 handle earlier in the European session to challenge the 1.3600 handle in the American session.

The US dollar is trading lower on Wednesday below the 93.00 mark as investors are taking some profits off the table after US President Trump announced on Tuesday that he withdrew the US from the Iran nuclear deal. Adding pressure to the greenback is the worse-than-expected Producer Price Index (PPI) data. The PPI ex Food and Energy year-on-year to April came below expectations at 2.3% against 2.4% forecast by analysts.

Technically, the GBP/USD is oversold and there is a combination of unwinding short positions and bottom pickers which is keeping the cable in the 1.3500-1.3600 range. The Bank of England’s Super Thursday will possibly give investors more details as to when the next rate hike will be coming next and give GBP some directionality.

GBP/USD 4-hour chart

The GBP/USD medium-trend is bearish but it is resting at its 200-period simple moving average and is currently in a range between the 1.3500 and 1.3600 level. If bulls manage to reclaim the 1.3650 and 1.3700 resistance levels the trend can reverse to the upside. Supports are seen at the 1.3550 and 1.3500 psychological levels.

Author

Flavio Tosti

Independent Analyst

GBP/USD remains slightly bid near 1.3300

GBP/USD now advances marginally and manages to dispute the 1.3300 region on Tuesday. Indeed, Cable regains some balance on the back of the lacklustre performance of the Greenback, all preceding the Fed’s meeting on Wednesday and the BoE’s gathering on Thursday.

EUR/USD recedes from tops, back below 1.1400

EUR/USD manages to set aside part of the recent weakness and clinches decent gains on Tuesday. Indeed, spot keeps the trade below the 1.1400 mark amid acceptable losses in the US Dollar, all following rising optimism of a US-Iran deal and steady caution prior to the FOMC gathering on Wednesday.

Gold holds above $4,000; looks to FOMC for fresh impetus amid US-Iran tensions

Gold is seen consolidating above $4,000 as traders opt to wait for the crucial FOMC decision due later this Wednesday for more cues about the Fed's future policy path. The outlook, in turn, will influence the US Dollar and provide some meaningful impetus to the non-yielding bullion. In the meantime, the risk of resumption of US-Iran hostilities continues to underpin the USD's reserve-currency status, acting as a headwind for bullion.

Australia CPI could boost Aussie if inflation arrives above 4%

The Australian Bureau of Statistics will publish the June Consumer Price Index on Wednesday at 01:30 GMT. The report is expected to show that inflation rose 4% from a year earlier, matching the May reading. The monthly CPI is foreseen at 0.2% following the -0.7% print from May. The ABS will also release the Trimmed Mean CPI, the Reserve Bank of Australia’s favorite inflation gauge.

Indian Rupee outlook: Downtrend set to persist – Just at a slower pace

The Indian Rupee just endured its most brutal six-month stretch in years, battered by a perfect storm of global shocks. From United States-India trade uncertainty to surging Oil prices and the significant outflow of Foreign Institutional Investment from the Indian stock market, every event brought nothing but pain for the Indian currency.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.