GBPUSD Insight

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Key Points
- Christine Lagarde, President of the ECB, hinted at the possibility of a rate pause, stating, “We’ll be watching closely to see if service inflation slows early this year.”
- According to the UK Office for National Statistics (ONS), the UK’s public sector net borrowing in December last year surged by 131% year-on-year to £17.8 billion, marking the highest level since the onset of the COVID-19 pandemic in 2020.
- President Trump announced additional tariffs on Mexico, Canada, and China starting February 1, creating a cautious market atmosphere amid tariff-related uncertainties.
- The Bank of Japan (BoJ) has commenced its monetary policy meeting today, with results set to be announced on the 24th.

This Week’s Key Economic Events
+ January 23: Trump Speech
+ January 24: Japan Rate Decision

GBP/USD Chart Analysis
After rebounding from the 1.21000 level, GBP/USD has broken above the 1.23000 level, displaying a bullish trend. Breaking through the nearby resistance suggests a strong potential for further upward movement, with the peak of this rally expected to reach the 1.25000 level. On the other hand, if the pair reverses downward, a decline to the 1.20000 level is anticipated.