The British pound rose slightly against the US dollar in Asian trading on Wednesday, returning to around 1.3380 and ending a four-day losing streak. However, the price has not yet broken through the key 1.3400 area, and the market remains cautious about whether the correction after falling from its more than two-month high has ended. Recent GBP/USD movements have been mainly influenced by dollar fluctuations and changes in global risk sentiment. The dollar index had previously risen for four consecutive days, reaching a one-week high, but as market expectations grew that the US and Iran might ease energy supply risks through diplomatic channels, the dollar gave back some of its gains, providing short-term support for the pound's rebound. However, geopolitical risks have not completely subsided, and tensions between the US and Iran continue to affect financial market sentiment. In particular, international crude oil prices rose to their highest level since June 12th after increased shipping risks in the Strait of Hormuz and the Houthi rebels in Yemen announced restrictions on shipping activities related to Saudi Arabia. Rising energy prices have reinforcing market concerns about inflationary pressures and increasing the likelihood that the Federal Reserve will maintain a tight policy stance in the future . Traders currently still believe that the Fed may raise interest rates at least once this year, which limits further weakness in the dollar and puts pressure on the GBP/USD exchange rate. In the UK, the market is awaiting the latest consumer inflation data for more clues about the Bank of England's future policy direction. If UK inflation remains high, the market may increase expectations that the Bank of England will maintain a restrictive policy, thus supporting the pound; however, weak economic data could weaken the pound's appeal. Meanwhile, the UK government's fiscal planning is also a key focus for the market. Investors are awaiting the long-term fiscal plan to be announced by Prime Minister Andy Burnham, paying particular attention to how the government will maintain fiscal stability while expanding public spending. Some institutions believe that uncertainty surrounding UK fiscal policy may continue to increase volatility in the bond market. Market concerns that the government might utilize "flexibility" within fiscal rules, with the specific sources of funding remaining unclear, could lead investors to reassess the risks in the UK government bond market. The UK's low savings rate and large current account deficit make its bond market more sensitive to changes in fiscal news . Therefore, even though the UK's debt-to-GDP ratio is not the highest among developed economies, the market may still increase risk premiums due to the uncertainty surrounding the fiscal path. Overall, GBP/USD is supported in the short term by a dollar pullback, but the pound itself still faces policy and fiscal uncertainties. Future movements will depend heavily on UK inflation data, changes in Federal Reserve policy expectations, and whether global energy risks continue to escalate. From a daily chart perspective, GBP/USD has recently entered a consolidation phase after falling from a two-month high, and the price is currently retesting the support area around 1.3360. The overall trend remains bullish in the medium term, but short-term momentum has weakened. The MACD indicator shows signs of adjustment at high levels, indicating a cooling of bullish momentum. Resistance is seen at the 1.3400 area, with further resistance at 1.3450 and near the previous high. Support is seen at 1.3330, followed by 1.3280 and 1.3200. If the price can regain a foothold above 1.3400, the short-term rebound may continue; a break below 1.3330 could lead to a further correction. On the 4-hour chart, GBP/USD shows signs of technical recovery after a continuous pullback, with short-term moving averages gradually stabilizing and the price oscillating around the 1.3360 area. The RSI indicator has rebounded from its lows, indicating some easing of short-term selling pressure, but the market still lacks strong upward momentum. A break above the 1.3400 resistance could lead to a rebound towards the 1.3450 area; a break below 1.3330 could retest the 1.3280 support. Currently, the 4-hour chart shows a tug-of-war between bulls and bears, and the future direction will depend on UK inflation data and the movement of the US dollar. In summary, GBP/USD is currently in a balancing phase between a dollar correction and inherent pressure on the pound. A short-term weakening dollar and easing expectations of energy risks provide an opportunity for a pound rebound, but expectations surrounding Fed policy, uncertainty surrounding UK fiscal planning, and bond market risks continue to limit the pound's upside potential. Future pound movements will hinge on UK inflation data, Bank of England policy signals, and the government's fiscal package. If UK economic data remains stable and market expectations for a dollar interest rate hike decrease, GBP/USD may continue to recover its previous losses; however, if energy prices continue to rise and renewed demand for the dollar as a safe haven, the pound's rebound may be suppressed. In the short term, the 1.3400 area will be a crucial technical level for determining the subsequent trend.