Key events today:

11:30 UTC: USD – Consumer Price Index (CPI).

The GBP/USD pair is declining, with spot prices currently trading around 1.2925. However, the downward movement lacks strong bearish momentum, as traders await the release of U.S. consumer inflation data before making new directional bets.

The U.S. Consumer Price Index (CPI) report will play a key role in shaping market expectations regarding the Federal Reserve’s rate-cut trajectory. This, in turn, will influence demand for the U.S. dollar and provide fresh momentum for the GBP/USD pair.

However, significant dollar strengthening appears unlikely, given the growing confidence that the Federal Reserve will cut interest rates multiple times this year amid concerns over an economic slowdown caused by tariffs. Additionally, expectations that the Bank of England (BoE) will cut rates at a slower pace than other central banks, including the Fed, could support the British pound (GBP) and provide stability for GBP/USD.

Thus, any further corrective decline could be seen as a buying opportunity and is likely to remain limited.

Recommendation: Buy 1.2935, SL 1.2895, TP 1.2985.