FxWirePro: GBP/USD outlook weaker on renewed downside pressure

• 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