**GBP/USD Dips Below 1.3550 on Fed Chair Hawkish Tone**
The GBP/USD currency pair fell into negative territory during early European trading Tuesday, dropping to approximately 1.3545 after Federal Reserve Chair Kevin Warsh delivered hawkish commentary at the Jackson Hole symposium. The remarks are providing immediate support to the US dollar against the British pound, pressuring the cable lower in morning sessions.
Despite the pullback, technical analysts note the pair maintains a bullish structural bias as long as it holds above the 100-day simple moving average. This suggests the current weakness may represent tactical consolidation rather than a broader trend reversal. Traders and forex brokers are watching this key technical level closely for signs of continuation or breakdown.
The hawkish Fed positioning is reinforcing dollar strength across major pairs as markets reassess interest rate expectations and monetary policy divergence between the US and UK central banks.
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FXnCO Insight
** Watch the 100-day SMA as your critical decision line—breaks below signal potential short opportunities, while holds above favor buying dips in GBP/USD.
Source: FXStreet