The pound remained stable against the dollar in Asian trading on Tuesday, holding near 1.3500, continuing its strong performance after two consecutive days of gains. The pound has recently become one of the stronger-performing major currencies, as markets reassess the UK economic outlook and the differences in monetary policy between the US and Europe. Although financial markets have reduced the likelihood of a near-term interest rate hike by the Bank of England, the pound has not been significantly dragged down. The main reason is that the US dollar has recently been affected by weak US employment data, lowering market expectations for a rapid tightening of policy by the Federal Reserve, thus easing downward pressure on the pound against the dollar. The weakening of the dollar's rebound momentum provides support for the pound to maintain its high levels . Previously, weaker-than-expected US non-farm payroll data led investors to refocus on signs of a cooling US economy and reduce bets on a short-term rate hike. However, the pound's upside potential is still influenced by the performance of the UK's domestic economy. The market is currently focused on the UK's preliminary second-quarter GDP and June monthly GDP data to be released this week. Data shows that the UK economy is expected to grow by about 0.4% in the second quarter, lower than the previous growth rate of 0.6%, while June's GDP may contract by about 0.1%. If the UK economic data is weaker than expected, the market may further reduce the likelihood of a future interest rate hike by the Bank of England and limit the pound's upside potential. Conversely, if the economic data shows resilience, it may strengthen market confidence in a soft landing for the UK economy, providing further support for the pound. The market has lowered its expectations for further interest rate hikes by the Bank of England this year, with investors focusing more on the balance between economic growth and inflation changes. Given the easing of inflationary pressures in the UK, the Bank of England's future policy path remains highly uncertain. Regarding the US dollar, the dollar index is currently hovering around 99.80, essentially maintaining the level seen in the previous trading day's rebound. The market is awaiting the US July Consumer Price Index (CPI) data to determine the Federal Reserve's future policy direction. The market expects overall US inflation to rise slightly in July, but not significantly. If the data meets expectations, it will support the market's view that US inflation is gradually cooling, thus limiting the dollar's rise. If inflation is higher than expected, it may re-strengthen expectations that the Fed will maintain high interest rates or even adjust its policy path. Currently, the market has lowered its expectations for a Fed rate hike in September due to weak employment data, which has become a significant factor putting pressure on the dollar recently. However, the inflation risk from rising energy prices remains, and investors still need to pay attention to whether US inflation data changes interest rate market pricing. From an overall market perspective, GBP/USD is currently driven by two factors: firstly, a cooling US economy and a weaker dollar are beneficial to the pound; secondly, slowing UK economic growth and policy uncertainty at the Bank of England limit upside potential. Therefore, short-term price movements are likely to continue to revolve around macroeconomic data. From a daily chart perspective, GBP/USD maintains a slightly bullish consolidation structure, currently trading around 1.3500 and holding above the 60-day exponential moving average at 1.3400. Meanwhile, the previous downtrend resistance line, which was broken, has now become support, currently around 1.3450. Technical indicators show the Relative Strength Index (RSI) remaining around 61, indicating bullish momentum, but it hasn't yet entered clearly overbought territory. Resistance is seen at the recent high around 1.3530; a break above this level could lead to a further test of the 1.3600 area. Support is seen at 1.3450, followed by the 1.3400 moving average; a break below this level could increase downward pressure. Observing the 4-hour chart, GBP/USD is consolidating at higher levels after its recent rise, with the price still trading near short-term moving averages, and the bullish structure remains intact. If the exchange rate breaks through the 1.3530 area, it may continue its upward trend in the short term, with attention focused on the 1.3560 area; if it falls below the 1.3450 support, it may enter a technical correction phase, further testing the 1.3400 area. Short-term movements will be mainly influenced by UK GDP data, US CPI, and changes in the US dollar index. Editor's Summary: The British pound has recently performed strongly against the US dollar, mainly benefiting from a weaker dollar and reduced market expectations for a near-term Federal Reserve rate hike. However, slowing UK economic growth and uncertainty surrounding the Bank of England's policy path remain significant factors limiting further gains for the pound. The future direction of GBP/USD will depend on two key factors: whether UK economic data demonstrates resilience and whether US inflation data further confirms expectations of a policy shift. If US inflation continues to cool, the dollar may come under pressure, and the pound is expected to continue its rebound; however, if inflationary pressures resurface, a dollar rebound could limit the pound's upside potential. In the short term, the 1.3450 to 1.3500 area will be crucial for assessing the balance of power between bulls and bears.