GBP/USD Trades Below 1.3500; Bullish Bias Holds Ahead of US PCE Data

GBP/USD Price Outlook: Trades Below 1.3500; Bullish Bias Intact Ahead of US PCE Data

The GBP/USD currency pair edged lower on Friday, trading below the 1.3500 level, pressured by some dip-buying in the US Dollar (USD) ahead of the release of the US Personal Consumption Expenditure (PCE) Price Index. Spot prices hovered around 1.3470-1.3475, down about 0.15% intraday.

Short-Term Bearish Momentum vs. Longer-Term Bullish Outlook

Despite the intraday dip, technical indicators on the daily charts suggest the pair retains a bullish bias. Recent rebounds from the 1.3415 weekly low and the support near the 38.2% Fibonacci retracement level of the ongoing rally support the bulls.

Hourly oscillators show bearish momentum that might drive another short-term slide, yet these dips may be seen as buying opportunities around the 1.3425-1.3415 support zone.

Policy Expectations Limit Downside Risks

Market expectations of the Federal Reserve (Fed) lowering borrowing costs again in 2025, combined with rumors that the Bank of England (BoE) might delay rate cuts during its June 18 meeting, help restrain significant declines in the GBP/USD pair.

What Traders Are Watching

Traders remain cautious ahead of the US PCE inflation data release, awaiting fresh signals to guide new positions. The pair’s near-term direction will likely depend on the interplay between US inflation data, Fed monetary policy outlook, and BoE decisions.

Key Points:

• GBP/USD trades below 1.3500, near 1.3470-1.3475 range
• Short-term bearish momentum visible on hourly charts
• Daily technicals support a bullish trend with key support at 1.3425-1.3415
• Fed expected to ease borrowing costs in 2025; BoE may delay rate cuts
• Market awaits US PCE Price Index for fresh trading impetus

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