GBP/USD – Is a New High Coming?

Hello everyone! What are your thoughts on GBP/USD?

In the previous session, GBP/USD saw a mild increase following the UK’s January inflation data release. However, later in the day, the U.S. dollar (USD) strengthened due to risk-averse market sentiment, leading to a pullback in the pair. The Federal Reserve’s January meeting minutes revealed that some policymakers were concerned about potential policy changes in trade and immigration, which could slow down disinflation progress.

Meanwhile, the U.S. 10-year Treasury yield fell to 4.5%, making it harder for the USD to gain demand, which helped GBP/USD maintain stability.

From a technical perspective, GBP/USD has been range-bound around 1.2668, showing limited volatility. The bullish trend remains intact, and a short-term correction could occur before the pair establishes a new high and strengthens its uptrend further.