• GBP/USD recovered ground after initially falling on Monday as Trump hinted that the UK could be exempt from tariffs.
• Over the weekend, Trump imposed 25% tariffs on Canada and Mexico, and 10% on China, citing the need to address the flow of migrants and the illegal drug fentanyl into the U.S.
• On the economic front, PMI data showed British factories faced another challenging month in January, with declines in output, new orders, and employment.
•The Bank of England meets on Thursday and is expected to cut interest rates by 25 basis points.
• Immediate resistance is located at 1.2495 (61.8%fib), any close above will push the pair towards 1.2553(Higher BB)
• Strong support is seen at 1.2378(50%fib) and break below could take the pair towards 1.2140(38.2%fib).
Recommendation: Good to sell l around 1.2450, with stop loss of 1.2520 and target price of 1.2350
