GBP/USD Price Forecast: Crucial upside barrier emerges near 1.3600, traders await US PPI release

• GBP/USD strengthens to around 1.3540 in Wednesday's early European session. 
• Positive view of the pair prevails above the 100-day EMA, with a bullish RSI indicator. 
• The immediate resistance level emerges in the 1.3585-1.3600 zone; the first support level to watch is 1.3496.

The GBP/USD pair trades on a stronger note around 1.3540 during the early European session on Wednesday. Traders ramp up their bets that the US Federal Reserve (Fed) will lower the borrowing costs at its September 16-17 policy meeting, which weighs on the US Dollar (USD) against the Cable. Traders await the US August Producer Price Index (PPI) data later on Wednesday, as it could help define the size and scope of interest rate cuts from the US central bank for next week and beyond.

Technically, the constructive outlook of GBP/USD remains in place as the major pair is well-supported above the key 100-day Exponential Moving Average (EMA) on the daily chart. Additionally, further upside looks favorable, with the 14-day Relative Strength Index (RSI) standing above the midline near 66.50. This displays the bullish momentum in the near term. 

The key upside barrier emerges in the 1.3585-1.3600 zone, representing the upper boundary of the Bollinger Band, the high of September 9, and a psychological level. A decisive break above this level could pick up more momentum and aim for 1.3632, the high of June 13. Further north, the next resistance level is seen at 1.3752, the high of July 2. 

On the downside, the low of September 1 at 1.3496 acts as an initial support level for GBP/USD. A breach of this level could drag the major pair toward the lower limit of the Bollinger Band of 1.3400. The next contention level to watch is 1.3388, the 100-day EMA. 

GBP/USD daily chart