• GBP/USD slid back below 1.3200 on Wednesday. 
• Recent bullish market flows are taking a breather.
• Rate-cut-hungry markets look ahead to Friday’s US PCE inflation.

GBP/USD fell back below 1.3200 on Wednesday after near-term bullish momentum eased. Markets have piled into a one-sided risk appetite stance as investors hunker down for the long wait to an anticipated kickoff of a rate-cutting cycle from the Federal Reserve (Fed) in September.

UK economic data remains limited this week, leaving the Pound Sterling exposed to broad-market sentiment flows. US Gross Domestic Product (GDP) figures are slated to release on Thursday, but little movement is expected as markets have broadly priced in Q2 annualized GDP growth to hold steady near 2.8%.

US Personal Consumption Expenditure Price Index (PCE) inflation due on Friday remains the week’s key print, and investors are shuffling their feet while they wait for signs that inflation will continue to ease, or at least not rise, fast enough that the Federal Reserve (Fed) will be kept on rails to deliver a hotly-anticipated rate cut on September 18.