Important events today:

14.01 13:30 UTC: USD – Producer Price Index

GBP/USD on January 14 is trading around 1.3420–1.3470. Support for the pound in recent sessions was largely driven by temporary dollar weakness amid political news in the U.S., but the market is quickly refocusing on interest rate expectations and underlying economic dynamics.

The focus is on UK data: GDP figures are expected this week, followed by employment and inflation reports. If the data come in weaker than expected, markets may increase bets on interest rate cuts by the Bank of England in the first half of the year, which typically limits the pound’s upside.

The U.S., by contrast, continues to offer arguments for higher asset yields and, consequently, demand for the dollar, especially during periods of rising global uncertainty. In the absence of signals of imminent policy easing by the Federal Reserve, the likelihood of further downside in the pair remains elevated.

Recommendations: SELL 1.3425, SL 1.3460, TP 1.3320