GBPUSD: BUY 1.2980, SL 1.2900, TP 1.3120 | 19 Marzo 2025

GBPUSD:

The pair is under pressure as the US Dollar (USD) tries to recover the losses of the last two sessions. However, downward movement may be limited as the USD remains vulnerable amid rising trade tensions and growing economic concerns in the US.

February US retail sales data rose less than expected, fuelling concerns over a potential slowdown in consumer spending. Markets widely expect the Federal Reserve (Fed) to maintain its current policy stance when it concludes its two-day meeting on Wednesday.

U.S. Census Bureau data released on Monday showed retail sales rose 0.2 per cent month-on-month in February, falling short of the 0.7 per cent expected. This followed a revised -1.2% decline in January (previously -0.9%). On a year-on-year basis, retail sales rose 3.1%, down from a revised 3.9% in January (previously 4.2%).

GBP/USD may find further support as the Pound Sterling (GBP) strengthens on expectations that the Bank of England (BoE) will keep interest rates on hold at Thursday's meeting. This cautious stance aims to balance sluggish economic growth and persistent inflation risks. In February, the central bank cut rates to 4.5 per cent and revised its 2025 growth forecast downwards to 0.75 per cent, citing concerns over tax hikes and global trade uncertainty.

Trading recommendation: BUY 1.2980, SL 1.2900, TP 1.3120

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