GBPUSD: BUY 1.3310, SL 1.3280, TP 1.3380 | 05 May 2025
05 May 2025, GBP/USD
Event to watch out for today:
15:30 EET. USD - Non-Farm Payrolls
GBPUSD:
The GBP/USD pair is showing downward momentum, falling towards the 1.3275 level during the Asian session on Friday. Some support for the US dollar (USD) is provided against the backdrop of positive signals regarding the prospects of trade negotiations between the United States and China. In the future, market participants will pay special attention to the publication of the April US employment report, which includes key indicators: non-farm payrolls (NFP), unemployment rate and average hourly earnings.
On Friday morning, Chinese officials said they were ready to consider resuming trade talks with the US. This was the first positive signal since US President Donald Trump announced in April that he would raise import tariffs. The easing of tensions in trade relations between the world's two largest economies and hopes for a resumption of dialog contribute to the strengthening of the U.S. dollar, thereby putting pressure on the position of the pound sterling.
According to the data published on Thursday by the U.S. Department of Labor, the number of initial applications for unemployment benefits for the week ended April 26 increased to 241 thousand, exceeding both the revised value of the previous week (223 thousand) and the market consensus (224 thousand). In addition, the Institute for Supply Management's (ISM) Manufacturing Business Activity Index (PMI) fell to 48.7 in April from the previous reading of 49.0, despite a forecast of 48.0.
At the same time, the Governor of the Bank of England Andrew Bailey emphasized that the regulator needs to take into account the potential risks associated with global trade tensions caused by the US tariff policy. Increased uncertainty amid possible escalation of trade conflicts prompts investors to reconsider expectations about further actions of the Bank of England. According to a Reuters poll, financial markets estimate the probability of the base interest rate cut by 25 basis points to the level of 4.25% at the end of the meeting scheduled for May 8 at almost 96%.
Trading recommendation: BUY 1.3310, SL 1.3280, TP 1.3380
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The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
