No major economic events are expected today.

GBP/USD is trading near 1.3440 following a noticeable weakening of the dollar. The primary driver has been the easing of tensions in the Middle East, which reduced safe-haven demand for the US currency while supporting interest in higher-yield assets. Additional support for the pair comes from a shift in Fed expectations: the market has become more cautious about the dollar’s strengthening potential after the recent drop in oil prices.

At the same time, the domestic backdrop in the UK remains mixed. Business activity in the services sector slowed in March, the composite index also declined, and companies are reporting sharp increases in costs for energy, raw materials, and shipping. This limits the pound’s potential for rapid gains, as pressure on businesses and consumption persists. The Bank of England is currently holding the rate at 3.75%, a stance that helps the pound remain resilient but does not provide a catalyst for a continuous rally.

For the current session, the bias shifts in favor of buying. The external environment is currently working harder against the dollar than weak British statistics are against the pound. As long as pressure on the US currency remains, GBP/USD may continue to move higher from current levels. At the same time, the pair’s growth remains sensitive to any return in dollar demand, so a moderate upward scenario looks most balanced.

Recommendations: BUY 1.3440, SL 1.3410, TP 1.3530