GBP/USD edges higher amid modest USD downtick, remains below mid-1.3300s

• GBP/USD attracts some dip-buying on Thursday amid a modest USD downtick.
• Bets for another 50 bps Fed rate cut and a positive risk tone undermine the USD.
• The BoE’s relatively hawkish stance remains supportive ahead of Powell’s speech.

The GBP/USD pair regains some positive traction during the Asian session on Thursday and reverses part of the overnight sharp retracement slide from the 1.3430 region, or its highest level since March 2022. Spot prices currently trade around the 1.3335-1.3340 area, up just over 0.10% for the day, and seem poised to resume the recent uptrend witnessed over the past two weeks or so. 

Despite the fact that several Federal Reserve (Fed) officials this week tried to push back against market expectations for a more aggressive policy easing going forward, investors are still pricing in a greater chance of an oversized rate cut in November. This, along with the underlying bullish sentiment surrounding the global financial markets, fails to assist the safe-haven US Dollar (USD) to capitalize on Wednesday's solid rebound from the vicinity of the YTD low. This, in turn, is seen as a key factor lending some support to the GBP/USD pair. 

Apart from this, expectations that the Bank of England's (BoE) rate-cutting cycle is more likely to be slower than in the United States (US) continues to underpin the British Pound (GBP) and contributes to the GBP/USD pair's intraday uptick. Bullish traders, however, might opt to wait for more cues about the Fed's rate-cut path before positioning for any further appreciating move. Hence, the focus remains glued to speeches by influential FOMC members, including Fed Chair Jerome Powell, which will drive the USD and provide a fresh impetus.

Traders on Thursday will further look to the US economic docket – featuring the release of the final Q2 GDP print, Weekly Initial Jobless Claims and Durable Goods Orders – to grab short-term opportunities later during the early North American session. The aforementioned fundamental backdrop, meanwhile, suggests that the path of least resistance for the GBP/USD pair remains to the upside. Hence, any meaningful corrective decline might still be seen as a buying opportunity and is more likely to remain limited.