GBPUSD: BUY 1.3380, SL 1.3345, TP 1.3440 | 22 Abril 2025

GBPUSD:

The GBP/USD pair is extending its upward momentum, reaching 1.3350 during the early Asian session on Monday. The rise in the major pair is supported by a weakening US dollar amid growing confidence among traders that US President Donald Trump's economic policies will lead the economy into recession.

British Prime Minister Keir Starmer and US President Donald Trump discussed “ongoing and productive” trade talks in their first conversation since Trump imposed tariffs on British goods. A Downing Street spokesman said Starmer emphasized his commitment to “free and open trade and the importance of protecting national interests.”

Starmer is seeking to reach an agreement with the U.S. after Trump announced 10 percent tariffs on British goods and 25 percent tariffs on imports of cars, steel and aluminum. Meanwhile, optimism around US-UK trade talks continues to support the British Pound against the US Dollar in the near term.

Nevertheless, “tough” remarks from the US Federal Reserve (Fed) representatives may lift the dollar and limit the main pair's growth. Fed Chairman Jerome Powell said last week that escalating rates could spur inflation while undermining growth, making interest rate decisions more difficult. Powell said, “At this point, we are willing to wait for greater clarity before considering any adjustments to our policy stance.”

Trading recommendation: BUY 1.3380, SL 1.3345, TP 1.3440

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