- Outlook GBP / USD shows that the appetite to improve risk after Trump paused reciprocal tariffs.
- Trump has imposed 125% tariff on China, exacerbating its trading relations with the US.
- Britain will strive for economic partnership with the US.
Outlook GBP / USD shows that the risk of risk appetites after Trump paused reciprocal tariffs in most countries. As a result, traders returned back to risk currencies like pounds and threw safer like yen. However, the escalating trading war between China and the US holds the cover on winnings.
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In the beginning, the pound crashed on Wednesday after Trump reciprocal tariff set fire to the property of a safe haven. The basic tariff of 10% on most American trading partners began on Wednesday. As a result, experts predicted a higher chance of a global recession that caused panic among merchants. Accordingly, the function collapsed as demand for safe assets in a safe haven.
However, the trend suddenly changed when Trump announced a 90-day break to reciprocal tariffs. The break revealed that the aggressive policy move was a negotiating tactic. Now most countries are ready to negotiate better trading jobs.
However, dark clouds continue to hang the global economy. The trading war between China and the US has worsened after Trump imposed 125% tariff on the ground. China replied with 84% tariff on American goods. The risk appetite will remain low until this conflict continues.
By the way, Prime Minister Great Britain said that Britain would endeavor to economic partnership with the United States. However, tariffs are darkened by the appearance of economics, increasing the bets with the color.
GBP / USD Key events Today
- US CPPI m / m core
- US CPI M / M
- US CPI I / I
- Unemployment Notices USA
GBP / USD Technical Outlook: Bukovi meet a solid resistance zone near Finis from 0.382
On the technical side, GBP / USD price has decreased after they have completed the support level of 1,2700. The beeches are trying to take control by pressing the price above the resistance of 30 SMA. However, they face a strong resilience zone containing the key level of 1,2880 and a level of download from 0.382 FIB.
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Strongly closely above this zone indicates movement of aids, cleaning the GBP / USD trail to reset resilience to 1,3200. On the other hand, if the bulls fails to close above the resistance zone, the price will be rejected below to re-set up in the amount of 1,2700. The break below this support will create a lower low, tilling bear.
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