GBP/USD is range-bound around 1.2450, BBH FX analysts note.

Most indicators of UK near-term activity decline

"The UK January Lloyds business barometer was mixed. The headline index fell to a 13-month low at 37 vs. 39 in December suggesting business investment backdrop remains sluggish. However, the 12-month ahead business activity index improved to 51 vs. 47 in December."

"The Bank of England (BOE) is widely expected to slash the policy rate 25bps to 4.50% next Thursday. Most indicators of UK near-term activity have declined, and services inflation cooled more than the BOE anticipated in December."