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
Penafian
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Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.