• GBP/USD ticks higher at the start of a new week amid a modest USD downtick.
• The Trump trade optimism should limit the USD downside and cap the major.
• The BoE uncertainty could also contribute to capping the upside for the GBP.

The GBP/USD pair kicks off the new week on a subdued note and consolidates in a range above the 1.2600 round-figure mark, or the lowest level since mid-May touched on Friday. Spot prices, for now, seem to have snapped a six-day losing streak amid a modest US Dollar (USD) downtick, though the fundamental backdrop supports prospects for an extension of the recent well-established downtrend.

The USD remains on the defensive below the year-to-date (YTD) top set last Thursday as bulls pause for a breather following the post-US election blowout rally. Any meaningful USD depreciation, however, seems elusive in the wake of expectations that US President-elect Donald Trump's policies will likely rekindle inflationary pressures and limit the scope for further rate cuts by the Federal Reserve (Fed). This has been a key factor behind the recent upsurge in the US Treasury bond yields, which suggests that the path of least resistance for the USD is to the upside.