GBPUSD: SELL 1.3300, SL 1.3340, TP 1.3210 | 24 April 2025

GBPUSD:

GBP/USD remains weak near 1.3280 in the early Asian session on Wednesday. Comments from US Treasury Secretary Scott Bessent hinted at a thaw in trade tensions between the US and China, fuelling optimism in markets and strengthening the US Dollar (USD) against the Pound Sterling (GBP).

Scott Bessent said on Tuesday that he expects US President Donald Trump's trade war with China to de-escalate in the very near future. He also stated that the tariff standoff with China cannot be continued by both sides and that the world's two largest economies will have to find ways to de-escalate.

In addition, Trump on Tuesday appeared to drop his threats to fire Federal Reserve (Fed) Chairman Jerome Powell after days of mounting criticism of the chairman for refusing to cut interest rates. Optimism and the easing of the trade war are providing some support for the US Dollar.

Traders will be keeping a close eye on developments around trade talks between the US and the UK. The Wall Street Journal reported Tuesday that the Trump administration is preparing its terms for trade talks with Britain, counting on London to lower duties and other non-tariff barriers on a wide range of U.S. goods.

According to people familiar with a draft document the Trump administration circulated to stakeholders this week outlining the goals of trade talks with the U.K., the U.S. will seek to have the U.K. reduce tariffs on cars from 10 percent to 2.5 percent.

Trading recommendation: SELL 1.3300, SL 1.3340, TP 1.3210

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