•GBP/USD rose high on Thursday as the dollar softened on uncertainty over the Fed’s independence.
• On Wednesday, President Trump lashed out at Fed Chair Jerome Powell, calling him "terrible" for not pushing sharper rate cuts. Meanwhile, Powell, in his Senate testimony, defended a cautious policy stance, citing inflationary risks stemming from the President’s tariff policies.
• The clash underscored escalating tensions between the White House and the Federal Reserve, fueling renewed concerns about the central bank’s independence and the potential politicization of its policy decisions.
• US economic data was mixed. The final reading from the U.S. Commerce Department showed gross domestic product contracted 0.5% in the first quarter.
• Initial jobless claims fell by 10,000 to a seasonally adjusted 236,000 for the week ending June 21, the U.S. Labor Department reported on Thursday.
• Immediate resistance is located at 1.3674(Daily high), any close above will push the pair towards 1.3831(38.2%fib)
• Strong support is seen at 1.3650(38.2%fib) and break below could take the pair towards 1.3541(SMA 20).
Recommendation: Good to buy around 1.3730 with stop loss of 1.3600 and target price of 1.3800
