GBPUSD: BUY 1.3050, SL 1.2960, TP 1.3135 | 14 Abril 2025

GBPUSD:

The GBP/USD pair made another bullish move higher on Thursday, helped by a general weakening in demand for the Dollar after US Consumer Price Index (CPI) inflation fell even faster than expected. Combined with a general weakening of risk flows following the Trump administration's constant merry-go-round of tariffs, which have succeeded each other time and time again, the Dollar's strength has diminished, giving the pair a chance to bounce back from recent losses.

US consumer price index (CPI) inflation came in below expectations in March. Core CPI fell to 2.8% y/y, hitting a four-year low after stubbornly holding above 3.0% for nearly eight months. Core CPI inflation also fell to 2.4% y/y. Investment markets will be devastated if tariffs undo the Federal Reserve's (Fed) multi-year effort to keep inflation in check.

The week will conclude on Friday with the results of the University of Michigan (UoM) Consumer Sentiment Index survey. The consumer sentiment index is expected to decline again in April as consumers continue to buckle under the weight of the Trump administration's tariff and trade ‘strategy’, falling to a near three-year low of 54.5. Consumer inflation expectations will also be released on Friday. UoM's 1-year and 5-year consumer inflation expectations were 5% and 4.1% respectively.

Trading recommendation: BUY 1.3050, SL 1.2960, TP 1.3135

Connect Drawdown bonus 101% and trade with double your deposit! Bonus funds will help you increase your profits or withstand a sudden drawdown!