No major events are expected today.

GBP/USD is trading around 1.3340 on March 4, edging lower as demand for the U.S. dollar rises as a more liquid safe-haven currency amid growing geopolitical risks. A sharp jump in energy prices is lifting inflation expectations, which typically leads to a repricing of rate forecasts and weighs on currencies of economies that are sensitive to the cost of fuel imports.

For the UK, the key risk is the pass-through of expensive energy into consumer prices and business costs. Against this backdrop, markets are assessing the Bank of England’s easing prospects more cautiously: even if growth slows, the regulator may prioritize keeping inflation under control, increasing uncertainty around the rate path and supporting sterling volatility.

On the U.S. side, the news flow also favors the dollar: higher oil prices raise the odds of a longer period of elevated inflation, pushing expectations for near-term Fed rate cuts further out. While regional tensions and the energy-price factor persist, the fundamental backdrop remains unfavorable for GBP/USD; support could come from an improvement in global risk sentiment and softer U.S. inflation signals.

Recommendation: SELL 1.3340, SL 1.3385, TP 1.3205