GBPUSD: BUY 1.3480, SL 1.3440, TP 1.3560 | 03 Junio 2025

An event to watch out for today:

17:00 EET. USD - ISM Manufacturing Index

GBPUSD:

The GBP/USD pair is gaining positive momentum again at the start of the new week amid renewed selling of the US dollar (USD), although it remains below the psychological mark of 1.3500 during the Asian session.

The Personal Consumption Expenditures (PCE) index released on Friday pointed to a further easing of inflationary pressures in the US and reinforced the case for further easing by the Federal Reserve (Fed). In addition, concerns about the deterioration of the US financial situation caused by the adoption of US President Donald Trump's “Big Beautiful Law” are putting new downward pressure on the US dollar.

The British pound (GBP), on the other hand, continues to show relatively strong momentum amid expectations that the Bank of England (BoE) will pause at its next meeting on June 18 and will not rush to further lower borrowing costs. This, in turn, is seen as another factor supporting the GBP/USD pair. However, weakening risk sentiment is limiting the US dollar's losses and may limit the pair's growth.

Global risk sentiment deteriorated after Trump said on Friday that China was not willing to comply with the terms of the trade agreement reached in Switzerland. This adds to the ongoing geopolitical risks associated with the war between Russia and Ukraine and conflicts in the Middle East, which are reducing investor appetite for risky assets and may provide some support for the US dollar as a safe-haven currency.

Trading recommendation: BUY 1.3480, SL 1.3440, TP 1.3560

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