• GBP/USD declined on Wednesday as dollar firmed despite downbeat US GDP data as trade tensions ease.
• U.S. Treasury Secretary Scott Bessent said progress is being made on tariff talks, with deals expected soon with India and South Korea.
• The developments helped ease tensions amid investor and corporate concerns that high tariffs could hurt growth, raise inflation, and increase unemployment.
• US GDP fell 0.3% in the quarter, according to a preliminary Commerce Department report, hit by a surge in imports as buyers rushed to beat upcoming Trump-era tariffs.
• Following the data, the British pound fell to trade 0.55% lower at 1.3333 against dollar at GMT 14:34
• Immediate resistance is located at 1.3412 (Daily high), any close above will push the pair towards 1.3470(23.6% fib)
• Strong support is seen at 1.3279 (38.2% fib) and break below could take the pair towards 1.3205(April 17th low).
Recommendation: Good to buy around 1.3270, with stop loss of 1.3200 and target price of 1.3450
