• GBP/USD strengthened on Wednesday as greenback weakened as investors grappled with ongoing uncertainty surrounding U.S. tariff policy.
• Donald Trump delivered his State of the Union address to a joint session of United States Congress. While no major new policy measures were announced.
• Sterling found additional support after Bank of England Governor Andrew Bailey struck a cautious tone on rate cuts, reinforcing the view that policy easing may not be imminent..
• Political risk is also on the radar, with attention turning to Thursday’s Manchester election, which could create further challenges for Prime Minister Keir Starmer.
• Immediate resistance is located at 1.3542( Daily high), any close above will push the pair towards 1.3600(SMA 20)
• Strong support is seen at 1.3423(61.8%fib) and break below could take the pair towards 1.3379(Lower BB).
Recommendation: Good to buy around 1.3500, with stop loss of 1.3430 and target price of 1.3560
