FxWirePro: GBP/USD drops as dollar strengthens post-U.S.-EU trade pact

• GBP/USD fell on Tuesday as the greenback extending its rally following Sunday’s announcement that the United States and the European Union had reached a framework trade pact.

•A newly introduced 15% tariff on most EU goods substantially higher than pre-2025 levels left investors reassessing trade and inflation risks.

• Meanwhile, U.S. President Donald Trump warned that, before the August 1 tariff deadline, a 15% to 20%  world tariff' would be imposed on countries that do not pursue bilateral trade deals with the U.S.

• Looking ahead, investor focus turns to the Federal Reserve’s policy decision, scheduled for Wednesday

•The Fed is widely expected to hold rates steady, but investors will closely watch Chair Powell’s commentary and the vote split for signals on the likelihood of future rate cut

•   Immediate resistance is located at 1.3510(38.2%fib), any close above will push the pair towards 1.3580 (July 23rd high)

•  Strong support is seen at 1.3311(50%fib) and break below could take the pair towards 1.32634(Lower BB).

  Recommendation: Good to sell around 1.3380 with stop loss of 1.3460 and target price of 1.3280