• GBP/USD eased below1.3700 level on Monday despite upbeat UK GDP data, as investors looked ahead to progress in U.S. trade talks with the July tariff deadline approaching.
• Investors are also watching for progress on U.S. trade deals, with a July tariff deadline approaching, as talks with Canada are set to resume following a brief pause.
• Markets are keeping are also closely watched on Trump’s expansive tax and spending package, currently under Senate review, which the Congressional Budget Office warns could raise U.S. debt by $3.3 trillion over 10 years.
•On the data front, Britain’s economy grew at its fastest pace in a year in Q1 2025, driven by a rush in home purchases and accelerated manufacturing ahead of U.S. tariff hikes.
•Britain’s economy grew 0.7% in Q1 2025, matching the preliminary estimate and marking the fastest pace since Q1 2024, the ONS reported.
• Immediate resistance is located at 1.3758(23.6%fib), any close above will push the pair towards 1.3787( Higher BB)
• Strong support is seen at 1.3658(Jun 26th low) and break below could take the pair towards 1.3562(38.2% fib).
Recommendation: Good to buy around 1.3650 with stop loss of 1.3550 and target price of 1.3750
