The GBP/USD pair is showing signs of strength after a slight dip following the US CPI data. With expectations of a dovish Fed and a positive risk sentiment, the USD is under pressure, providing support to the GBP. Traders are now awaiting the release of the UK GDP data for further direction before turning their attention to the upcoming US macroeconomic indicators.

The preliminary UK Q3 GDP print is expected to show a 0.6% expansion, slightly lower than the previous quarter. However, with a potential uptick in GDP growth and a surprise drop in the UK unemployment rate, the BoE may face challenges in its interest rate decisions, which could benefit the GBP.

On the US front, the focus is on key data releases such as Retail Sales, Initial Jobless Claims, and Manufacturing Index figures. The data could impact the USD price dynamics and influence the GBP/USD pair. The recent US CPI report indicated moderate inflation, easing concerns about aggressive Fed rate cuts and geopolitical risks, which could limit the downside for the USD.

In summary, the GBP/USD pair is being influenced by dovish Fed expectations, positive risk sentiment, and upcoming UK and US economic data. Traders should keep a close watch on the GDP figures and key US indicators for potential trading opportunities.

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