The GBP/USD pair also continues a strong upward movement. Unfortunately, unlike the EUR/USD pair, no buy signal was formed before the start of the rally, so traders were unable to open new positions using the "Smart Money" system. However, not all is lost, and there is no reason to despair. Monday ended with the formation of a new bullish imbalance 14, which will act as a zone of interest for bullish traders going forward.

The new week began with fresh attacks from Donald Trump. This time, Canada became the target due to its trade relations with China without Washington's approval. Traders did not react at all to Monday's news about a possible 100% tariff increase on Canada, but on Tuesday the bulls launched a new offensive. This happened because Donald Trump threatened South Korea with higher tariffs due to the overly slow ratification of a trade agreement with the United States, and because a new government shutdown could begin in the U.S. as early as February 1, since Trump cannot reach an agreement with the Democrats. The Federal Reserve is unlikely to support the dollar this week, while Donald Trump continues to attack, criticize, and threaten countries around the world one after another. Let me remind you that last time the government was shut down for a month and a half, and the problem was resolved only by adopting temporary funding through January 31. Thus, if funding is not extended this week, starting February 1, a new American blockbuster will be playing in all theaters across the country.

Since the bullish trend in the euro remains intact, in my view the bullish trend in the pound also persists. I cannot imagine a bullish trend in the euro and, at the same time, a bearish trend in the pound. This week, a new bullish imbalance 14 was formed, which may allow traders to open new buy positions in the future.

The information background for the dollar should no longer be divided by days. The U.S. currency is in an almost free fall due to factors that have no expiration date. In other words, bulls can continue to attack tomorrow even if no news reaches the market. The environment has become as favorable as possible for bulls.

In the United States, the overall news backdrop remains such that nothing but a decline in the dollar can be expected in the long term. The situation in the U.S. remains quite difficult. The shutdown lasted a month and a half, and Democrats and Republicans agreed on funding only through the end of January, which ends on Saturday. U.S. labor market data continue 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 perfectly complement the current picture of an "American political crisis." In my opinion, bulls have everything they need to continue their advance and return prices to last year's highs.

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 hang like dead weight over the dollar. What would bears use to push the pound lower? If new bearish patterns appear, a potential decline in the pound sterling could be reconsidered, but at the moment there are none.

News Calendar for the United States and the United Kingdom:

• United States – Federal Reserve interest rate decision (19:00 UTC)
• United States – FOMC press conference (19:30 UTC)

On January 28, the economic calendar contains two events, both of which are important. The impact of the news background on market sentiment on Wednesday may be absent in the evening hours.

GBP/USD Forecast and Trading Advice:

For the pound, the picture remains clear; what is lacking are new patterns and signals. Bulls have launched a new offensive that threatens to be quite prolonged and substantial.

Since the bullish trend is undeniable, traders can only trade to the upside based on clear patterns and clear signals. In the near future, traders may expect prices to return to imbalance 14 and the formation of a new bullish signal. As a target for potential growth, I previously considered the 1.3725 level; this level has already been reached, but the pound may rise much higher in 2026, especially given the events of the first month of the year. If bearish patterns form, short positions will also be possible, but within a bullish trend, I am a proponent of buying rather than selling.