Last week, GBP/USD suffered a loss of almost 200 pips. However, the new week has started on a positive note for the pair as it has made a recovery towards 1.2500. As there are no major data releases planned, the pair's movement for the day will depend on the risk perception.
During the second half of the previous week, GBP/USD was continuously under bearish pressure, as USD gained strength from safe-haven flows. Additionally, the cautious approach of the Bank of England towards further rate hikes and Governor Andrew Bailey's positive outlook on inflation added to the burden on Pound Sterling.