GBPUSD: BUY 1.2700, SL 1.2640, TP 1.2785 | 05 Marzo 2025

GBPUSD:

The GBP/USD pair rose on Monday amid a weaker US Dollar and a stealthy recovery in Pound Sterling flows, settling back at the 1.2700 mark. Price movement continues to rest against the 200-day exponential moving average (EMA).On Monday, US President Donald Trump reiterated his threats to impose a 25 per cent tariff package on Canada and Mexico, which will automatically take effect at midnight Eastern Time on Tuesday morning. While markets have become accustomed to President Trump overplaying his policy threats since taking office in January, this time could be different and overall market sentiment is wavering.

UK economic data remains limited this week, so markets are forced to labour under the burden of tariff threats as well as Friday's upcoming Nonfarm Payrolls (NFP) report due out later in the week.

Traders' confidence in the US economy has been shaken, and investors will be closely monitoring this week's NFP employment data.However, several public speeches from the Federal Reserve (Fed) are scheduled during the week, with the ISM Services Purchasing Managers' Index (PMI) data due on Wednesday. According to a survey of key business operators, business activity expectations fell slightly in March, with ISM's manufacturing PMI falling to 50.3. The economic indicator is still holding above the key 50.0 level that normally separates contraction and expansion expectations, but the one-month drop from February's reading of 50.9 accelerated from the market's median forecast of a slight decline to 50.5.

Trading recommendation: BUY 1.2700, SL 1.2640, TP 1.2785

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