• GBP/USD edged higher on Tuesday as investors searched for signs of respite in an ongoing global trade war.
• Indications that countries such as Japan, UK and Europe, Israel were looking to negotiate trade deals with the United States further provided impetus for risk taking.
• British Prime Minister Keir Starmer stated on Monday that his government’s initial response to higher tariffs imposed by U.S. President Donald Trump should not be to ease public borrowing rules.
• On Monday, the European Commission announced that it had proposed a "zero-for-zero" tariff deal in an effort to prevent a trade war, as EU ministers agreed to make negotiations a priority.
• Immediate resistance is located at 1.2802(Daily high), any close above will push the pair towards 1.2926(38.2%fib)
• Strong support is seen at 1.2703(50%fib) and break below could take the pair towards 1.2575(61.8%fib).
Recommendation: Good to buy around 1.2730, with stop loss of 1.2650 and target price of 1.2800
