• GBP/USD climbed on Tuesday as risk sentiment improved after U.S. President Donald Trump hinted he might grant exemptions on auto-related tariffs.
• Overnight, Trump indicated he was considering modifying the 25% tariffs on foreign auto and auto parts imports.
• Investors welcomed temporary tariff exemptions for certain sectors, hoping that punitive levies could be reduced after recent market volatility.
• On the macro front, data on Tuesday showed Britain's labour market showed signs of weakening in the run-up to this month's increase in a tax on employers.
• At GMT 11:11, the British pound was trading higher 0.32% at 1.3023 against US dollar
• Immediate resistance is located at 1.3245 (23.6%fib), any close above will push the pair towards 1.3262(Higher BB).
• Strong support is seen at 1.3167 (Daily low) and break below could take the pair towards 1.3144(38.2% fib).
Recommendation: Good to buy around 1.3200, with stop loss of 1.3150 and target price of 1.3280
