GBP/USD edges higher above 1.3200 as Fed's Powell signals ready to cut rates

• GBP/USD trades in positive territory for the eighth consecutive day near 1.3215 in Monday's early Asian session. 
• Fed's Powell signalled for a September rate cut but did not mention about the size and pace of the rate cut. 
• BoE's Bailey said it's still too early to declare victory on inflation.

The GBP/USD pair trades on a stronger note around 1.3215 during the early Asian session on Monday. The signal that the US Federal Reserve (Fed) will start easing its monetary policy in September drags the Greenback lower and supports GBP/USD. Market players await the US Durable Goods Orders for July, which are due later on Monday. 

At Jackson Hole on Friday, Fed Chair Jerome Powell gave a clear signal that the FOMC will cut the target range for the Federal Funds Rate at their next meeting on September 17-18 as inflation is on a sustainable path back to the 2% target. Nonetheless, Powell did not want to provide a hint about the size of the rate cut in September and the pace of the rate cut this year as the Fed remains data-dependent. 

The firmer bets of the Fed rate cuts continue to undermine the Greenback and create a tailwind for GBP/USD. Rabobank analysts noted that they expect the labor market to worsen further in the remainder of the year, triggering four consecutive rate cuts of 25 basis points (bps) each in the September, November, December and January meetings. 

On the other hand, the speculation that the Bank of England's (BoE) policy-easing cycle will be slower than that of other major central banks provides some support to the Pound Sterling (GBP). BoE Governor Andrew Bailey said late Friday that inflation remains a major concern for the UK central bank, although many pricing pressures have eased quicker than expected. Bailey noted that it is premature to declare victory on inflation.