The GBP/USD pair is also continuing a strong growth process. Unfortunately, unlike the EUR/USD pair, no buy signal was formed before the start of the move, so traders had no opportunity to open new trades using the "Smart Money" system. However, not all is lost. Monday ended with the formation of a new bullish imbalance 14, which will act as an area of interest for bullish traders going forward. Yesterday, another bullish imbalance 15 was formed, which can also be used to open new trades. The bullish trend is not just intact—it is indisputable. Since early November, the pound has risen by 800 points.

The Fed meeting is now behind us and provided no support to the U.S. dollar. In my view, the Fed made no important decisions, and Jerome Powell did not say anything significant. Therefore, the passivity of traders on Wednesday evening was entirely expected. Now, however, the market is shifting its attention to Iran. According to insider information, the United States may launch an airstrike against the country within 48 hours. Tehran has refused to accept Donald Trump's proposal for a denuclearization deal, stating that it "violates Iran's independence." According to some sources, negotiations are ongoing, but it is unclear to me what the sides are negotiating if each remains firm in its position. Most likely, a new strike on Iran will be carried out over the weekend.

Since the bullish trend in the euro remains intact, I believe the bullish trend in the pound also persists. I cannot imagine a bullish trend in the euro alongside a bearish trend in the pound. This week, imbalances 14 and 15 were formed, which will allow traders to open new buy trades in the future. In my view, the technical picture remains unambiguous—as does traders' strategy.

The news background for the dollar should no longer be viewed on a day-by-day basis. The U.S. currency is in near free fall due to factors that have no expiration date. In other words, bulls can resume attacks on any day and at any moment, as Donald Trump provides them with such opportunities every day. The U.S. president stated this week that a weak dollar is "just great," as it makes American products more competitive on global markets. The dollar has no one to throw it a lifeline.

In the United States, the overall news background remains such that, in the long term, nothing but further dollar declines can be expected. The situation in the U.S. remains quite complicated. The government shutdown lasted a month and a half, and Democrats and Republicans agreed on funding only until the end of January, which ends on Saturday. U.S. labor market data continues to disappoint or be ignored by the market. The last three FOMC meetings ended with dovish decisions, and the latest data suggest that the pause in monetary easing will be short-lived. Trump's military aggression, threats toward Denmark, Mexico, Cuba, Colombia, EU countries, Canada, and South Korea, the initiation of criminal proceedings against Jerome Powell, and the threat of a new shutdown all perfectly complement the current picture of an "American crisis." In my view, bulls have everything they need to continue their advance throughout all of 2026 (albeit with pauses).

A bearish trend would require a strong and stable positive news background for the dollar, which is difficult to expect under Donald Trump. Moreover, the U.S. president himself does not need a strong dollar, as the trade balance would remain in deficit in that case. Therefore, I still do not believe in a bearish trend for the pound, despite the fairly sharp decline in September and October. Too many risk factors continue to weigh heavily on the dollar. What exactly are bears going to use to push the pound lower? If new bearish patterns emerge, a potential decline in sterling can be reconsidered, but at the moment there are none.

News Calendar for the U.S. and the UK:

• U.S. – Producer Price Index (13:30 UTC)

On January 30, the economic calendar contains only one entry that is of no interest. The impact of the news background on market sentiment on Friday will be absent.

GBP/USD Forecast and Trader Advice:

For the pound, the picture remains clear; what is lacking are new buy signals. Bulls have launched a new offensive that threatens to be both lengthy and serious.

Since the bullish trend is indisputable, traders are left with only one option: trade to the upside using clear patterns and clear signals. In the near future, traders may expect a return of prices into imbalance 14 or at least imbalance 15, followed by the formation of a new bullish signal. As a target for potential growth, I previously considered the 1.3725 level; this level has been reached, but the pound may rise much higher in 2026—especially considering the events of the first month of the year. If bearish patterns form, short trades may also be considered, but in a bullish trend, I remain a proponent of buying rather than selling.