No major events are expected today.

The GBP/USD pair remains weak after the losses recorded in the previous session, trading around 1.3280 during Asian hours on Wednesday. This decline may be attributed to risk aversion due to escalating geopolitical tensions in the Middle East, which is weighing on the risk-sensitive British pound (GBP) and the GBP/USD pair.

Iran launched more than 200 ballistic missiles at Israel on Tuesday, shortly after the U.S. warned of an imminent strike. The Israeli Defense Forces reported that several missiles were intercepted, while one person was killed in the West Bank, according to Bloomberg.

Israeli Prime Minister Benjamin Netanyahu vowed to retaliate against Iran following Tuesday’s missile attack. In response, Tehran warned that any retaliation would lead to “massive destruction,” raising concerns about a potential broader conflict.

The U.S. dollar (USD) is receiving support from the recent comments by Federal Reserve (Fed) Chair Jerome Powell. Powell stated that the central bank would gradually reduce interest rates over time. He added that the recent rate cut should not be seen as a sign of similarly aggressive actions in the future, noting that upcoming rate adjustments would likely be more modest.

On Tuesday, Bank of England (BoE) Chief Megan Greene warned that a recovery in consumption in the United Kingdom (UK) could trigger a new wave of inflation. However, Greene noted that further interest rate cuts are likely as prices are “moving in the right direction,” according to Bloomberg.

Recommendations: Watch the 1.3300 level; if the pair consolidates above it, consider Buy positions, and if it rebounds, consider Sell positions.