No major events are expected today.

The pair is trading near 1.3540 following a notable decline the previous day. The primary pressure on the pair stems from a strengthening US Dollar following accelerating inflation and rising Treasury yields. The market has become more cautious in assessing the Fed’s rate outlook, and demand for the Greenback has intensified due to deteriorating sentiment across global markets and rising oil prices.

The Pound remains under domestic pressure due to political uncertainty in the UK and a spike in long-term government bond yields. Investors fear that prolonged leadership disputes could complicate fiscal policy and increase borrowing costs for the government, businesses, and consumers. Consequently, any attempts to stabilize the Pound appear limited.

For today, the baseline scenario for GBP/USD remains moderately negative. If Dollar demand persists and no clear signals of easing political tension in the UK emerge, the pair may continue its downward correction. Upcoming US Producer Price Index (PPI) data could amplify this movement if it confirms persistent inflationary pressure. Therefore, preference remains for selling at current levels.

Recommendations: SELL 1.3540, SL 1.3560, TP 1.3450.