The GBP/USD exchange rate struggles against the US dollar even after recent inflation data indicated a boost for the pound. The market reacted positively, but lingering geopolitical tensions have created a cautious atmosphere. Reports of Ukraine utilizing UK Storm Shadow missiles contribute to a defensive dollar sentiment, undermining GBP’s gains. This scenario highlights the complexities of currency trading, where both economic indicators and external geopolitical factors influence movement. Traders need to carefully analyze the evolving situation to anticipate potential shifts in the exchange rate.