• GBP/USD eased on Wednesday as investors digested the Bank of England's half-yearly report on financial stability and assessed the potential impact of trade disputes on global economic growth.
• Global sentiment turned cautious after President Trump announced a 50% tariff on imported copper and new levies on semiconductors and pharmaceuticals.
• Trump announced that on Wednesday he’d roll out trade actions impacting a minimum of seven countries, following his August 1 tariff warning to 14 nations.
• The pound is up nearly 9% against the dollar this year, heading for its biggest annual gain since 2017. However, fiscal concerns have capped its rise, with the currency down over 1.4% from its 2021 high earlier this month.
• Meanwhile, The Bank of England, in its half-yearly financial stability report, warned that risks to markets remain elevated amid ongoing U.S. tariff threats.
• Immediate resistance is located at 1.3606(38.2%fib), any close above will push the pair towards 1.3795(23.6%fib)
• Strong support is seen at 1.3533(July 8th low) and break below could take the pair towards 1.3451(50%fib).
Recommendation: Good to buy around 1.3560 with stop loss of 1.3470 and target price of 1.3610
