• GBP/ strengthened on Tuesday as sterling gained some traction on rising expectations the Bank of England will not cut interest rates later in the week.
• The BoE is expected to maintain its cautious approach, balancing the impact of Trump’s trade war and Britain’s mixed economic outlook.
•Meanwhile, Britain’s Labour government unveiled plans to cut over £5 billion ($6.48 billion) from the welfare budget by 2029/30, aiming to curb rising costs despite internal party tensions.
•Money markets priced in 54 bps of BoE easing moves in 2025 and an 89% chance of no change in rates this week.
• Immediate resistance is located at 2.0488(38.2%fib), any close above will push the pair towards 2.0632(23.6%fib ).
• Immediate support is seen at 2.0293( 50%fib) and break below could take the pair towards 2.0157(61.8%fib).
Recommendation: Good to buy around 2.0400, with stop loss of 2.0320 and target price of 2.0550
