• GBP/USD initially dipped but recovered some ground as cable found support at 1.2400 level after a drop triggered by Trump’s remarks.
• Trump repeated his threat to impose 25% tariffs on Canada and Mexico starting February 1.
•Trump has threatened to impose a 25% tariff as soon as Saturday on Canadian and Mexican exports to the U.S. if they do not stop fentanyl shipments across the border.
• The British pound came under significant pressure at the start of the month, as investors sold British government bonds and the currency, reigniting concerns about the country's finances.
• Technical signals are strongly bearish as RSI is at 49, daily momentum studies `14 and 21 DMAs are trending down.
• Immediate resistance is located at 1.2523(50%fib), any close above will push the pair towards 1.2567(Higher BB)
• Strong support is seen at 1.2400( Daily low)and break below could take the pair towards 1.2092 1.2362(38.2%fib)
Recommendation: Good to sell around 1.2450 with stop loss of 1.2520 and target price of 1.2380