Key events today:

12:30 UTC: USD – Consumer Price Index (CPI)

14:00 UTC: USD – Federal Reserve Chairman Jerome Powell speaks

On Tuesday, the GBP/USD pair regained its position, breaking a three-day losing streak and returning to the 1.2450 level, rising by approximately two-thirds of a percent for the day. Global currency markets slightly pressured the US dollar as risk appetite gradually recovered across the board, supported by Federal Reserve (Fed) Chairman Jerome Powell’s speech and expectations that the latest iteration of US President Donald Trump’s tariff threats will be averted through last-minute concessions, as has been the norm since Trump took office.

Midweek UK data remains scarce, but GBP traders will closely monitor Thursday’s release of the UK Gross Domestic Product (GDP) data. The UK GDP is expected to show a recovery to 1.1% year-on-year in the fourth quarter, although the quarterly GDP figure is projected to decline by -0.1%.

The US Consumer Price Index (CPI) will be the key indicator on Wednesday. Core US CPI inflation is expected to remain at 2.9% YoY, while headline CPI inflation is forecasted to decrease to 3.1% from the previous 3.2%. The US Producer Price Index (PPI) will be released on Thursday, with core business-level inflation expected to slightly decline to 3.3% YoY from 3.5%.

Recommendation: SELL: 1.2440, SL 1.2490, TP 1.2370.