GBP/USD Struggles Near 1.3470 as Market Anticipates Federal Reserve Decision

The GBP/USD currency pair encountered fresh selling pressure near the 1.3500 threshold during the European session, retreating to trade around the 1.3470 level and remaining just above a recent one-month low. This downward movement is primarily fueled by a strengthening US Dollar, which benefits from rising Treasury yields, escalating geopolitical tensions in the Middle East, and growing expectations of a hawkish policy stance from the upcoming Federal Reserve meeting driven by oil-related inflation risks. While technical indicators point toward potential shallow consolidation rather than an aggressive continuation of the trend, market participants are closely monitoring critical technical levels such as the 200-day Simple Moving Average at 1.3455. A definitive break beneath this key moving average could expose the pair to deeper declines toward the 1.3406 and 1.3343 support markers, completely overshadowing any positive momentum gained from domestic consumer inflation figures as traders position themselves for the crucial central bank outcome.