Latest GBP/USD Update Today

The GBP/USD pair attracted buying interest in the early Asian session, temporarily halting its decline from above 1.2700 to below 1.2600. This recovery is supported by a slight weakening of the US dollar.

Concerns over the US economic outlook and expectations of further Fed policy easing have prevented the USD from sustaining its three-day rebound. The US Dollar Index (DXY) started the week on a weaker note, reversing Friday’s gains.

Meanwhile, the British pound remains strong, driven by expectations that the Bank of England (BoE) will adopt a less aggressive easing approach. However, risks from Donald Trump’s tariff policies and ongoing geopolitical tensions could cap GBP/USD’s upside momentum.