• GBP/USD lacks firm intraday direction and oscillates in a narrow range on Tuesday.
• The fundamental backdrop and the technical setup seem tilted in favor of bulls.
• A convincing break below the 1.2900 mark is needed to negative the positive bias.

The GBP/USD pair struggles to capitalize on the previous day's modest bounce from the 1.2900 neighborhood and oscillates in a narrow trading band during the Asian session on Tuesday. Spot prices currently hover around the 1.2930 area, nearly unchanged for the day, and remain at the mercy of the US Dollar (USD) price dynamics.

Investors have fully priced in an interest rate cut by the Federal Reserve (Fed) at the September policy meeting, which keeps the US Treasury bond yields depressed. This, in turn, prompts some USD selling and turns out to be a key factor acting as a tailwind for the GBP/USD pair. Apart from this, the diminishing odds of an interest rate cut by the Bank of England (BoE) in August offer some support to the currency pair. 

From a technical perspective, the recent breakout through the previous YTD peak, around the 1.2895 region, was seen as a fresh trigger for bullish traders. Moreover, the Relative Strength Index (RSI) on the daily chart has eased from the overbought zone and is holding comfortably in positive territory. This validates the positive outlook and suggests that the path of least resistance for the GBP/USD pair is to the upside