No significant events are expected today.

The GBP/USD pair struggles to build on the strong gains recorded over the past two days and consolidates near the weekly high, just below the psychological level of 1.2500 during the Asian session on Wednesday. However, the downside remains limited due to continued selling pressure on the US dollar (USD).

Meanwhile, global risk sentiment remains supported by optimism following US President Donald Trump’s decision to delay tariffs on Canadian and Mexican imports. This move helped ease concerns about a trade war and its impact on the global economy. The overall positive tone in equity markets reflects this sentiment, weakening the “safe-haven” dollar and acting as a tailwind for GBP/USD.

However, investors remain cautious about the potential consequences of ongoing trade tensions between the US and China, the world’s two largest economies. This, along with the Federal Reserve’s hawkish outlook, helps limit the USD’s decline and caps the upside potential for GBP/USD. Additionally, traders appear hesitant ahead of a key central bank event – the Bank of England’s (BoE) policy meeting on Thursday.

Recommendations: Watch the 1.2500 level; if the price consolidates above it, consider Buy positions. In case of a pullback, look for Sell opportunities.