• GBP/USD gained strength on Friday as the perceived possibility for tariff negotiations eased concerns over a potential trade war.
• On Thursday, Trump refrained from immediately imposing reciprocal tariffs, indicating potential for negotiations.
•Rather than immediately imposing reciprocal tariffs on Thursday, President Trump opted to initiate an in-depth investigation into the tariffs and levies imposed on U.S. goods by other countries.
•Looking ahead, U.S. retail sales figures for January are set to be released later today, providing key insights into consumer spending trends and the overall health of the US economy.
• Immediate resistance is located at 1.2625( 38.2%fib), any close above will push the pair towards 1.2667(Dec 19th high)
• Strong support is seen at 1.2528(50%fib) and break below could take the pair towards 1.247(61.8%fib).
Recommendation: Good to buy around 1.2560 with stop loss of 1.2500 and target price of 1.2650.
