Important events today:

11.02 13:30 UTC: USD – Unemployment Rate.

GBP/USD is trading around 1.3660–1.3670, with U.S. employment data being the main source of short-term volatility today. After signs of cooling demand and slower growth in labor costs, market participants assume that credit conditions in the U.S. could ease later this year, making the dollar particularly sensitive to each new data release.

On the UK side, two factors continue to weigh on the pound. First, the Bank of England kept rates unchanged, but the vote was very close, and the regulator signaled that further slowing inflation could lead to lower borrowing costs. Second, political developments are increasing uncertainty around fiscal policy, raising the risk premium on UK assets.

If the U.S. employment report delivers no strong surprise, the market’s focus will quickly return to the UK outlook and expectations of rate cuts, creating room for further pound weakness. Risks for the pair are tilted to the downside, though sharp swings on U.S. news should be considered.

Recommendations: SELL 1.3670, SL 1.3705, TP 1.3565