The GBP/USD pair extended its sideways consolidative price action and held steady above mid-1.3400s post-UK macro releases. Following a brief consolidation through the Asian session on Tuesday, the pair managed to gain some positive traction and built on the previous day's strong rally of around 190 pips. Renewed optimism that the UK is heading towards a Brexit deal continued underpinning the British pound and was seen as a key factor lending some support to the GBP/USD pair.
On the other hand, the US dollar languished near two-and-half-year lows amid hopes for additional US fiscal stimulus measures. That said, investors now seemed reluctant to place any aggressive bets, rather preferred to wait on the sidelines ahead of the latest FOMC monetary policy update, scheduled to be announced later during the US trading session.