Key events today:

06:00 UTC: GBP – Claimant Count Change.

The GBPUSD pair is trading on a stronger note near 1.2570 during the early European session on Wednesday. The British pound (GBP) is strengthening despite US President-elect Donald Trump announcing new tariff measures. Traders are awaiting the release of the US Core Personal Consumption Expenditures (PCE) Price Index for October to provide new momentum.

Early Tuesday, Donald Trump pledged to impose tariffs on all goods imported into the US from Canada, Mexico, and China, which boosted the dollar against the pound in the previous session. On Wednesday, the dollar’s rally is pausing as traders await US Core PCE inflation data to gain further insights into interest rate outlooks. Meanwhile, the US Dollar Index (DXY), which measures the dollar’s value against a basket of currencies, is currently trading near the lower boundary of its weekly range around 106.85.

Most Bank of England (BoE) policymakers support a gradual approach to policy easing. On Tuesday, BoE Deputy Governor Clare Lombardelli stated that she needs to see more evidence of cooling price pressures before supporting another interest rate cut. Expectations of a BoE rate cut next month are providing some support to the British pound at the moment.

Recommendations: Monitor the 1.2550 level. If the pair consolidates below, consider Sell positions. If it rebounds, consider Buy positions.