FxWirePro: GBP/USD stays above 1.2400 after Trump-induced drop

• 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