On Wednesday, at the beginning of the European session, the GBP/USD pair is trading above the 100-day SMA. The British pound is supported by reduced expectations for further monetary policy easing by the Bank of England in light of persistent inflation risks. In recent months, inflation in the United Kingdom has been accelerating.

Yesterday, on Tuesday, Bank of England Monetary Policy Committee member Catherine Mann emphasized the need to maintain the current interest rate level to contain inflationary pressures, while adding that she is prepared to consider more decisive measures, including rapid and significant rate cuts, if the risks of declining domestic demand become more evident.

The dynamics of GBP/USD are constrained by the strengthening of the US currency following a correction in earlier trading. However, the potential for further dollar growth is limited by ongoing uncertainty regarding the Fed's future policy and rising expectations of a more accommodative monetary stance.

On Tuesday morning, US President Donald Trump announced the removal of Fed Board member Lisa Cook from office. This incident marks the first time in the Federal Reserve's 111-year history that a central bank head has been dismissed at the president's initiative. Trump also confirmed his readiness for legal proceedings against Cook over alleged mortgage documentation falsification.

The resignation of Fed Chair Lisa Cook could increase the likelihood of an earlier rate cut, given Trump's ongoing pressure on the central bank to lower borrowing costs. According to CME Group's FedWatch tool, traders are pricing in an 87% probability of a rate cut of at least 25 basis points at the September meeting, up from 84% the prior day.

From a technical perspective, prices are above the 100-day SMA, indicating a lack of readiness to decline, but below the 9-day EMA, confirming bull weakness. The daily chart oscillators are neutral.

The nearest resistance the price needs to overcome is at 1.3475, where the 9-day EMA is located; the next resistance is at 1.3500 (50-SMA). Breaking through these barriers would put the price on track toward the round level of 1.3600, above which the bulls would clearly gain strength.

Support is at the 100-day SMA around 1.3430, below which prices will find support at the round level of 1.3400. If the price drops below this level, the bears will overcome the bulls, with the price stopping at 1.3362 and moving toward the round level of 1.3300.