GBPUSD: SELL 1.3310, SL 1.3330, TP 1.3240 | 29 Abril 2025

GBPUSD:

The GBP/USD pair started the new week on a subdued note and is fluctuating in a narrow range around the round 1.3300 mark during the Asian session.

The US Dollar (USD) maintains its recovery from last week's multi-year lows amid uncertainty over US-China trade talks, which in turn is seen as a key factor acting as a headwind for the GBP/USD pair. US Treasury Secretary Scott Bessent said on Sunday that he was unaware whether US President Donald Trump had spoken to Chinese President Xi Jinping. This has tempered optimism over Trump's claims that tariff talks with China are underway, and supports the US Dollar's relative status as a “safe-haven currency”.

The British Pound (GBP), on the other hand, is receiving some support from favorable domestic data released on Friday and hopes that the UK will soon strike a trade deal with the US. For instance, UK retail sales unexpectedly rose by 0.4% in March after a downwardly revised 0.7% increase in the previous month. Overall, retail sales rose 1.6% in the first quarter, the highest in four years and dampening market expectations for a softer Bank of England (BoE) rate cut in the future.

On the contrary, traders are factoring in the likelihood that the Federal Reserve (Fed) will resume its rate-cutting cycle in June and reduce borrowing costs at least three times before the end of this year.

Trading recommendation: SELL 1.3310, SL 1.3330, TP 1.3240

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