Fundamental analysis
The British pound held steady near $1.3250 following President Trump’s announcement of a US-UK trade deal.
Although the 10% tariffs on British goods remained, the deal offered US procurement access and delayed decisions on UK agricultural market openings, indicating a modest initial scope. Meanwhile, the Bank of England delivered a 0.25% rate cut as expected but adopted a hawkish tone, emphasizing the need for sustained restrictive policy to curb inflation. Notably, two members voted to hold rates, reinforcing a cautious stance. As a result, markets now price in roughly 0.59% of cuts by year-end.
Technical analysis
GBPUSD tumbled after failing to break above 1.3350, closing below the converging EMAs, a sign of building bearish pressure.
If the pair breaks below 1.3200, it may target 1.3100 next, then 1.3000.
However, a move back above the EMAs could see another attempt at 1.3350 resistance.
By María Agustina Patti, Financial Markets Strategist at Exness
The British pound held steady near $1.3250 following President Trump’s announcement of a US-UK trade deal.
Although the 10% tariffs on British goods remained, the deal offered US procurement access and delayed decisions on UK agricultural market openings, indicating a modest initial scope. Meanwhile, the Bank of England delivered a 0.25% rate cut as expected but adopted a hawkish tone, emphasizing the need for sustained restrictive policy to curb inflation. Notably, two members voted to hold rates, reinforcing a cautious stance. As a result, markets now price in roughly 0.59% of cuts by year-end.
Technical analysis
GBPUSD tumbled after failing to break above 1.3350, closing below the converging EMAs, a sign of building bearish pressure.
If the pair breaks below 1.3200, it may target 1.3100 next, then 1.3000.
However, a move back above the EMAs could see another attempt at 1.3350 resistance.
By María Agustina Patti, Financial Markets Strategist at Exness
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.