• GBP/USD dipped on Tuesday as dollar firmed after U.S. President Donald Trump reiterated threats of widespread tariffs.
• On Monday, Trump announced plans to impose tariffs on imported computer chips, pharmaceuticals, and steel.
• This week is packed with central bank meetings, with the Federal Reserve’s interest rate decision on Wednesday taking center stage, where it’s expected to keep rates unchanged..
• Markets will also focus on the December U.S. personal consumption expenditures data, due Friday, which is a key inflation indicator.
• Immediate resistance is located at 1.2520 (50%fib), any close above will push the pair towards 1.2440(Jan 7th high)
• Strong support is seen at 1.2353(38.2%fib) and break below could take the pair towards 1.2140(23.6%fib).
Recommendation: Good to sell l around 1.2450, with stop loss of 1.2500 and target price of 1.2380
