• GBP/USD firmed on Tuesday as investors digested Bank of England Governor Andrew Bailey comments and monitored potential fallout from new U.S. tariffs.
• Bank of England Governor Andrew Bailey said on Tuesday that an interest rate cut in March was a possibility although services price inflation in recent data which is closely watched by the central bank had not fallen as much as hoped.
• Bailey told lawmakers he would need further evidence to feel confident about cutting borrowing costs at its policy announcement on March 19, having voted with a 5-4 majority on the Monetary Policy Committee to hold interest rates this month.
• Bailey reiterated the BoE's view that headline inflation was likely to fall sharply to around the central bank's 2% target in data for April which is due to be published in May.
•Meanwhile,Investors are grappling with fresh uncertainty over U.S. tariffs after a 10% levy took effect just after midnight Tuesday, according to a Customs notice. The timing of President Donald Trump’s proposed increase to 15% remains unclear..
• Immediate resistance is located at 1.3556(50%fib), any close above will push the pair towards 1.3618(SMA 20)
• Strong support is seen at 1.3427(61.8%fib) and break below could take the pair towards 1.3376(Lower BB).
Recommendation: Good to buy around 1.3500, with stop loss of 1.3420 and target price of 1.3580
