GBP/USD maintains position around 1.3500 ahead of Q2 US GDP Annualized

• GBP/USD may regain its ground amid rising concerns over Fed independence.
• Fed Governor Cook's exit could increase the likelihood of interest rate cuts.
• CBI Retail Sales edged up to -32 in August from -34 in July, beating expectations of -33.

GBP/USD remains steady after two days of gains, trading around 1.3500 during the Asian hours on Thursday. The pair may further appreciate as the US Dollar (USD) struggles amid rising concerns over the US Federal Reserve's (Fed) independence.

Traders await the Q2 US Gross Domestic Product (GDP) Annualized due later in the day. Focus will shift toward July Personal Consumption Expenditures (PCE) Price Index data, the Fed's preferred inflation gauge.

US President Donald Trump announced early Tuesday that he was removing Fed Governor Lisa Cook from her position on the Fed's board of directors. He also said that he was ready for a legal fight with Cook over falsified mortgage documents.

The dismissal of Fed Governor Cook could increase the likelihood of heavy interest rate cuts, given Trump's ongoing pressure on the central bank to reduce borrowing costs. Traders are now pricing in more than 88% odds for a cut of at least a quarter-point at the Fed's September meeting, up from 82% the previous week, according to the CME FedWatch tool.

The GBP/USD pair moves little following the release of the Confederation of British Industry's (CBI) Retail Sales, which improved slightly to -32 in August from -34 in July, better than the expected -33 reading. The reading suggests that retail sales volumes declined for the 11^th successive month.

The CBI noted that while companies continue to face elevated costs, they are raising prices at a slower pace than earlier in the summer, a trend that keeps the Bank of England cautious about service inflation. Meanwhile, weak demand and rising labor costs are squeezing margins, undermining confidence, and leading firms to scale back hiring and investment, the CBI added.