• GBP/USD regains positive traction following the previous day’s post-US CPI decline.
• Dovish Fed expectations and a positive risk tone weigh on the USD and lend support.
• Traders now look to the UK GDP print for some impetus ahead of the US macro data.

The GBP/USD pair attracts some dip-buying during the Asian session on Thursday and reverses a part of the previous day's post-US CPI retracement slide from the vicinity of the monthly peak. Spot prices currently trade around the 1.2735-1.2740 region, up less than 0.10% for the day as traders now look to the release of the preliminary UK Q3 GDP print for a fresh impetus.

The consensus estimates suggest that the British economy expanded by 0.6% during the April-June period, slightly less than the 0.7% rise recorded in the previous quarter. Meanwhile, the annualized UK GDP growth is expected to come in at 0.9% as compared to 0.3% in the first quarter. Against the backdrop of a surprise dip in the UK unemployment rate, even a stronger GDP print will signal a strengthening economy. This might complicate the Bank of England’s (BoE) plans to lower interest rates and provide a goodish lift to the British Pound (GBP). 

Apart from this, investors on Thursday will take cues from the US macro data – monthly Retail Sales, the usual Weekly Initial Jobless Claims, the Empire State Manufacturing Index and the Philly Fed Manufacturing Index. The data might influence the USD price dynamics and provide some meaningful impetus to the GBP/USD pair. Ahead of the key data, bets for an imminent start of the Federal Reserve's (Fed) rate-cutting cycle, bolstered by data indicating that inflation is on a downward trend, weigh on the USD and lend support to the currency pair.