FxWirePro: GBP/USD slips as US-China tariff truce boosts dollar strength

• GBP/USD fell on Monday as the dollar strengthened following a U.S.-China truce to temporarily ease tariffs and trade tensions.

• The U.S. will cut tariffs on Chinese imports to 30% from 145%, while China will lower duties on U.S. goods to 10% from 125%, exceeding investor expectations after weekend talks.

•The de-escalation, which came as a result of intensive negotiations over the weekend, went beyond what most investors had anticipated.

• This unexpected move boosted investor confidence and reduced fears of a prolonged trade conflict between the world’s two largest economies.

• At GMT 11:29, the pound  was down 1.07% to 1.3162 against the greenback.

•   Immediate resistance is located at 1.3274(38.2%fib), any close above will push the pair towards 1.3411(May 6th high)

•  Strong support is seen at 1.3132(50%fib) and break below could take the pair towards 1.2977(61.8%fib).

  Recommendation: Good to sell around 1.3180, with stop loss of 1.3250 and target price of 1.3110