GBP/USD caught a foothold on Monday, halting a near-term pivot into the low side.
Fresh trade war rhetoric from the Trump administration has sparked fresh risk aversion in global markets.
The July 9 tariff deadline has already been kicked down the road, but fresh tariffs now loom ahead.
GBP/USD shed some weight on Monday, trimming further into the low side and adding onto near-term losses as Pound Sterling bulls take a breath. Losses were contained in early-week trading; however, a fresh bout of tariff threats from US President Donald Trump has crimped investor risk appetite, curbing topside market flows and sparking a fresh risk-off push into the US Dollar.
The Trump administration hit the ground running this week, pushing back its own self-imposed July 9 deadline for the restart of wide-ranging reciprocal tariffs that were initially announced and then immediately delayed in early April. Despite yet another pivot on “firm” deadlines for tariffs from the Trump team, President Trump has announced a fresh batch of additional tariffs, adding double-digit tariff levels to take effect on April 1 alongside the suspended reciprocal tariffs.
The economic data docket remains fairly limited this week. Market focus will be trained firmly on trade war rhetoric from the Trump administration, though the Federal Reserve’s (Fed) latest Meeting Minutes, which will be released on Wednesday, will draw some attention from traders looking to further gauge how near (or far) the Fed is from cutting interest rates.
GBP/USD price forecast
Despite a near-term rotation into intraday weakness, GBP/USD continues to hold onto the high end. The pair is trading well above the 50-day Exponential Moving Average (EMA) near 1.3465, and an immediate price floor is priced in from the 1.3600 handle. Long-term bullish trendlines are still holding firm, but Cable could be due for a steeper correction as technical oscillators ease back from overbought territory.
GBP/USD daily chart
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
