GBPUSD: BUY 1.2410, SL 1.2360, TP 1.2470 | 10 Febrero 2025

GBPUSD:

On Monday, GBP/USD fell to 1.239 during Asian trading. This follows a rise in the US dollar after US President Donald Trump announced plans for retaliatory tariffs. Later on Wednesday, the release of the Consumer Price Index (CPI) for January will be the main event.

On Friday, Trump stated that he would announce retaliatory tariffs on Tuesday or Wednesday on countries that tax US imports, and that these would take effect 'almost immediately'.

Tariffs on British goods exported to the US could still be in place, although Trump said a deal 'could be reached'. The market is closely monitoring developments around Trump's new tariff measures. Any indications of escalating trade war tensions could potentially support the US dollar.

Expectations of further rate cuts by the Bank of England (BoE) could potentially weaken the British pound (GBP). Bank of England Governor Andrew Bailey has indicated that further rate cuts are anticipated, emphasising the need for careful consideration at each meeting to determine the extent and pace of any adjustments. During the press conference, Bailey also highlighted that economic activity is weakening and the jobs market is slowing. Market analysis indicates the likelihood of a 50 basis point (bps) rate reduction in 2025.

Trading recommendation: BUY 1.2410, SL 1.2360, TP 1.2470

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