Ella 
GBP/USD struggled to capitalize on the good overnight rally from the 1.2800 round figure (or nearly three-week low) and attracted some selling in Asia on Tuesday. Spot prices are currently trading around 1.2850, which is bearish on the strength of the US dollar, but the fundamentals warrant caution among bearish traders.
A softer risk tone has helped the safe-haven dollar show a slight bullish bias near its 2.5-week high (Monday), becoming a key factor pressuring GBP/USD. However, market expectations that the Federal Reserve will begin to reduce borrowing costs in September may be negative for the dollar. In addition, traders may be inclined to wait for more clues on the path of interest rate cuts before betting on a clear direction in the short term. The focus therefore remains on the results of the highly anticipated two-day FOMC monetary policy meeting, which will be announced on Wednesday.
