The GBP/USD pair edges lower during the Asian session on Wednesday and erodes a part of the previous day's strong move up to over a four-month peak, around the 1.2965 area.

Spot prices currently trade around the 1.2935 region, though the downtick lacks bearish conviction as traders keenly await the release of the US consumer inflation figures before placing fresh directional bets.

The US Consumer Price Index (CPI) report will play a key role in influencing market expectations about the Federal Reserve's (Fed) rate-cut path, which, in turn, will drive the US Dollar (USD) demand and provide a fresh impetus to the GBP/USD pair.

In the meantime, some repositioning trade ahead of the crucial data assists the buck to recover a part of the previous day's slide to its lowest level since mid-October and acts as a headwind for the currency pair.

Source: FXStreet