• GBP/USD continues with its struggle to gain any meaningful traction on Tuesday.
• Bets for a BoE rate cut in August act as a headwind amid modest USD strength.
• Traders also prefer to wait on the sidelines ahead of the UK election on Thursday. 

The GBP/USD pair extends its sideways consolidative price move during the Asian session on Tuesday and remains confined in a familiar range held over the past two weeks or so. Spot prices currently trade around the 1.2655-1.2645 confluence region – comprising 50-day and 100-day Simple Moving Averages (SMAs) – amid the anxiety surrounding the upcoming UK general elections on Thursday.

In the meantime, the Bank of England's (BoE) dovish pause in June, which lifted bets for a rate cut at the August monetary policy meeting, continues to undermine the British Pound (GBP). The US Dollar (USD), on the other hand, builds on the overnight solid bounce from a multi-day low and further seems to act as a headwind for the GBP/USD pair. The yield on the benchmark 10-year government bond shot to its highest level in a month on Monday amid concerns that the imposition of aggressive tariffs by the Trump administration could fuel inflation and trigger higher interest rates.