GBPUSD: BUY 1.3290, SL 1.3260, TP 1.3380 | 13 May 2025

GBPUSD:

The GBP/USD pair opens the new trading week on a weak note, leveling off some of the moderate recovery recorded on Friday from the 1.3200 level, the lowest level in more than three weeks. As of the Asian morning session, spot quotes are trading in the range of 1.3280-1.3275, showing a decline of 0.20% for the day amid the general strengthening of the US dollar.

On Sunday, the United States announced a trade agreement with China following tense negotiations over the weekend in Switzerland. This event helps to reduce investors' concerns about a potential recession in the US. Additional support for the dollar is provided by the Federal Reserve's policy: the hawkish pause made earlier this month stimulated the growth of the US currency to a one-month high, which puts additional pressure on the GBP/USD rate.

At the same time, last Thursday the US and the UK signed an agreement to partially lift trade restrictions. In addition, the cautious rhetoric of the Bank of England, which expressed its willingness to maintain a restrictive monetary policy as long as necessary to combat inflationary risks, may help to curb excessive sell-offs of the pound sterling and limit the large-scale decline in GBP/USD.

From a technical point of view, the price dynamics of the last three weeks remains predominantly sideways, which indicates the need for caution when forming medium-term trading strategies. Market participants will probably prefer to wait for the speeches of the members of the Monetary Policy Committee of the Bank of England, as well as representatives of the Federal Reserve System, in search of signals about the future direction of monetary policy. These comments may set a new impetus for the GBP/USD currency pair movement.

Trading recommendation: BUY 1.3290, SL 1.3260, TP 1.3380

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