• GBP/USD slipped sharply lower on Tuesday as dollar rebounded strongly as Donald Trump’s inauguration reignited concerns over tariffs .
• Trump's tariff plans are a key focus for investors, as the size and scope of the tariffs will determine whether the dollar's post-election rally continues.
• Given the inflationary potential of tariffs, they are expected to shape expectations for how many rate cuts the Federal Reserve might implement this year.
• Technical signals are strongly bearish as RSI is at 39, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.2361( 50%fib), any close above will push the pair towards 1.2487 (61.8%fib)
• Strong support is seen at 1.2230(38.2% fib) and break below could take the pair towards 1.2089 (23.6% fib).
Recommendation: Good to sell around 1.2260 with stop loss of 1.2330 and target price of 1.2160
