GBP/USD flat lines below 1.2700, looks to US data/FOMC minutes for some impetus

• GBP/USD lacks firm intraday direction on Wednesday amid mixed fundamental cues.
• August BoE rate cut bets cap the GBP ahead of the UK general elections on Thursday.
• Traders also seem reluctant and prefer to wait for the release of the FOMC minutes.

The GBP/USD pair struggles to build on the overnight goodish rebound from the 1.2615 area, or a multi-day low and oscillates in a narrow band during the Asian session on Wednesday. Spot prices remain confined in a familiar range held over the past two weeks or so and currently trade just below the 1.2700 round-figure mark.

Against the backdrop of the Bank of England's (BoE) dovish pause in June, which lifted bets for a rate cut in August, the anxiety surrounding the upcoming UK general elections on Thursday acts as a headwind for the British Pound (GBP). The US Dollar (USD), on the other hand, struggles to attract any meaningful buyers in the wake of Fed Chair Jerome Powell's dovish-sounding remarks on Tuesday, saying that the US economy has made significant progress on inflation and is back on the disinflationary path. 

Powell's comments reaffirm market expectations that the Fed is more likely to begin its rate-cutting cycle in September and again lower borrowing costs in December. This, along with a modest downtick in the US Treasury bond yields, keeps the USD bulls on the defensive, which, in turn, is seen acting as a tailwind for the GBP/USD pair. Meanwhile, expectations that a Trump presidency would be more inflationary than the Biden administration should limit the downside for the US bond yields and the Greenback. 

Traders also seem reluctant and might prefer to wait for more cues about the Fed's rate-cut path before placing aggressive directional bets. Hence, the focus remains on FOMC meeting minutes, due for release later during the US session. In the meantime, Wednesday's US economic docket – featuring the ADP report on private-sector employment and the ISM Services PMI – might provide some impetus to the GBP/USD pair. The immediate market reaction, however, is likely to be limited ahead of the key event risks.