• GBP/USD gained on Thursday as the dollar weakened after President Trump intensified the trade war with China but paused tariffs for 90 days on many other countries.
• In a dramatic policy shift on Wednesday, Trump suspended most tariffs less than 24 hours after they began, offering relief to global markets.
• BoE’s Sarah Breeden said the effect of U.S. tariffs on UK inflation and rates is unclear, though they may slow global growth.
• On Tuesday, BoE Deputy Governor Clare Lombardelli said it’s too soon to assess how Trump’s tariffs will affect UK inflation.
• As of Thursday, rates futures priced in an 84% chance of a 25bps rate cut at the BoE’s May policy meeting.
• Immediate resistance is located at 1.2945 (38.2%fib), any close above will push the pair towards 1.3000 (Psychological level).
• Strong support is seen at 1.2773 (50% fib) and break below could take the pair towards 1.2719(Lower BB).
Recommendation: Good to buy around 1.2900, with stop loss of 1.2850 and target price of 1.2980
