• GBP/USD struggles to lure buyers on Monday amid a modest US Dollar uptick.
• Dovish Fed expectations act as a headwind for the USD and support the major.
• Traders keenly await this week’s key macro releases and the BoE rate decision.

The GBP/USD pair remains on the defensive during the Asian session on Monday, though it lacks bearish conviction and holds above the 200-day Simple Moving Average (SMA) pivotal support. Spot prices currently trade around the 1.3360 region, nearly unchanged for the day.

The US Dollar (USD) is looking to build on last week's modest bounce from an over two-month low and is turning out to be a key factor acting as a headwind for the GBP/USD pair. A slight deterioration in the global risk sentiment – as depicted by a generally weaker tone around the equity markets – is seen offering some support to the safe-haven buck. The USD bulls, however, seem reluctant to place aggressive bet amid dovish US Federal Reserve (Fed) expectations.

Despite the Fed's cautious signal last week, traders are still pricing in the possibility of two more interest rate cuts next year as signs of a weakening labor market are becoming increasingly evident. Furthermore, the prospect of a Trump-aligned Fed chair should keep a lid on any meaningful USD recovery and help limit the downside for the GBP/USD pair. Traders also seem reluctant ahead of this week's important macro releases and the central bank event risk.

The UK monthly employment details will be published on Tuesday, ahead of the delayed US Nonfarm Payrolls (NFP) report for October. This will be followed by the latest UK inflation figures on Wednesday and the crucial Bank of England (BoE) policy decision on Thursday, which will play a key role in influencing the British Pound (GBP). Apart from this, the US consumer inflation figures on Thursday could determine the near-term trajectory for the GBP/USD pair.