GBPUSD continues to decline

Dear friends, GBP/USD is currently trading within a narrow range in the Asian session before declining to the 1.2100 area in the European morning. The long-term technical outlook suggests that the downward trend remains intact. We are awaiting key central bank events this week - the FOMC policy decision on Wednesday, followed by the Bank of England (BoE) meeting on Thursday.

In the near future, there are no significant economic data expected from the UK, which means that immediate price action will depend on USD dynamics. Once the North American trading session begins, traders will react to US economic data, including the Chicago PMI and Conference Board Consumer Confidence Index. Additionally, US bond yields will impact USD demand, potentially creating short-term trading opportunities around the GBP/USD pair.