• GBP/USD rounded on Monday as improved risk sentiment supported the British currency.
• Investors have paused on Trump’s trade policies, remaining cautious after some of his cabinet picks raised concerns. While his proposed trade strategies, particularly with China, had initially sparked optimism, uncertainty.
• UK CPI and PPI will be key this week as inflation shows signs of rising. With consumer prices (CPI) and producer prices (PPI) under scrutiny, any uptick in inflation could prompt market speculation about the Bank of England's next move on interest rates.
• Immediate resistance is located at 1.2706( 38.2%fib), any close above will push the pair towards 1.2790 (50%fib)
• Strong support is seen at 1.2595(23.6%fib) and break below could take the pair towards 1.2568(Lower BB).
Recommendation: Good to buy around 1.2660 , with stop loss of 1.2560 and target price of 1.2730
