• GBP/USD dipped on Monday as dollar gained as markets absorbed news of a fresh trade deal between the U.S. and the EU.
• The U.S. and EU reached a framework trade deal on Sunday, introducing a 15% tariff on most EU goods and obligating the bloc to invest approximately $600 billion in the U.S.
• There’s limited UK economic data scheduled for this week. With the BoE meeting next week, markets are nearly certain a 25bps rate cut is coming — one of just two anticipated for the rest of the year.
• Markets are now assigning an 86.5% probability to a 25 basis point rate cut by the BoE on August 7.
• Immediate resistance is located at 1.3458( Daily high), any close above will push the pair towards 1.3543(38.2%fib)
• Strong support is seen at 1.3393 (50%fib) and break below could take the pair towards 1.3328(Lower BB).
Recommendation: Good to sell around 1.3430, with stop loss of 1.3500 and target price of 1.3370
