FxWirePro: GBP/USD edges higher amid dollar weakness

• GBP/USD rose slightly on Thursday as the dollar weakened, with traders boosting expectations of a potential Federal Reserve rate cut next month after signals from New York Fed chief John Williams.

• On Wednesday, New York Fed President John Williams said interest rates could likely fall in the future, but policymakers will wait for upcoming economic data to determine if a cut at the September meeting is appropriate.

• Markets are pricing in over an 87% probability of a 25-basis-point rate cut at next month’s Fed policy meeting, according to the CME FedWatch Tool.

• On the data front, The U.S. economy expanded more than initially estimated in Q2, fueled partly by business investment in intellectual property like AI, though import tariffs continue to pose challenges.

• The Commerce Department’s BEA reported that GDP grew at a 3.3% annualized rate last quarter in its second estimate.

• Investors are now anticipating Friday’s release of the Personal Consumption Expenditures (PCE) data, an important indicator of inflation for the U.S. Federal Reserve.

•   Immediate resistance is located at 1.3612(38.2%fib), any close above will push the pair towards 1.3633(Higher BB)

•  Strong support is seen at 1.3472 (38.2%fib) and break below could take the pair towards 1.3452(SMA 20).

  Recommendation: Good to buy around 1.3500  with stop loss of 1.3420 and target price of 1.3560