Key events today:

13:30 UTC: USD – U.S. Quarterly GDP Change

The GBP/USD pair continues its decline for the second session in a row, hovering near the 1.3390 mark during Asian trading on Wednesday. The pair remains under pressure as the U.S. dollar strengthens amid renewed optimism over trade developments between the U.S. and China. Traders are now focusing on the upcoming release of the March Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s key inflation indicator.

The U.S. Dollar Index (DXY), which measures the dollar against six major currencies, remains above the 99.00 level, indicating rising U.S. Treasury yields. The yields on 2-year and 10-year U.S. bonds have broken a four-day losing streak and were trading around 3.66% and 4.17%, respectively, at the time of writing.

On the data front, Tuesday’s JOLTS report showed a decline in U.S. job openings to 7.19 million in March — the lowest since September 2024 — highlighting a cooling labor demand. The figure missed expectations and underscored increasing economic uncertainty.

Additional pressure on the GBP/USD pair comes from growing expectations that the Bank of England (BoE) will cut rates at its May meeting. Lower inflation expectations in the UK and intensifying global economic factors support this outlook.

BoE policymaker Megan Greene recently stated that the tariffs proposed by U.S. President Donald Trump could lower inflation in the UK, although significant uncertainty remains regarding the broader economic consequences and the recent employer tax hikes.

Recommendation: SELL 1.3390, SL 1.3420, TP 1.3300.