The GBP/USD pair continues its upward momentum, approaching the key 1.3000 level as selling pressure on the US Dollar (USD) intensifies. During European trading, US stock index futures dropped by 0.5%, reflecting a cautious market sentiment ahead of major macroeconomic events this week. Despite market uncertainty, GBP/USD remains well-supported as investors avoid taking aggressive positions before central bank decisions.

Market participants closely watch the Federal Reserve’s (Fed) interest rate decision and the updated Summary of Economic Projections (SEP) scheduled for Wednesday. The so-called “dot plot” will provide insight into the Fed’s future rate path. Meanwhile, during Thursday’s meeting, the Bank of England (BoE) is expected to keep its monetary policy unchanged.

Before these key events, US Retail Sales data for February, due on Monday, will be a crucial driver for GBP/USD. Analysts expect a 0.7% month-over-month increase, rebounding from January’s -0.9% decline. A weaker-than-expected Retail Sales figure could further pressure the USD, allowing GBP/USD to push higher. However, a risk-off tone in US equities could support the Greenback, potentially limiting the pair’s gains.

Trade Idea: Consider buying GBP/USD near 1.2950, targeting 1.3050, as USD weakness persists ahead of key central bank decisions, but monitor US Retail Sales data for potential volatility.