GBP/USD inches lower after remaining flat in the previous day, trading around 1.3500 during the Asian hours on Wednesday. The currency pair continues to hold its losses as the US Dollar (USD) gains strength ahead of a crucial inflation report. Market expectations remain divided over the central bank's rate trajectory following its decision to hold rates steady in July. Meanwhile, the US Dollar is drawing support from geopolitical uncertainty surrounding a potential diplomatic deal between the US and Iran. However, these gains in market optimism were quickly checked by escalating rhetoric from the White House.