GBPUSD: BUY 1.2790, SL 1.2740, TP 1.2860 | 06 March 2025

An event to watch out for today:

15:15 EET. USD - ADP Employment Change

GBPUSD:

The GBP/USD pair is trading slightly higher near 1.2790 in the early hours of European trading on Wednesday. The US dollar (USD) is holding near a three-month low amid concerns over slowing US economic growth and the impact of tariffs.

“Concerns about weakening U.S. and global economic activity are playing out in the markets, with cyclical factors driving the sell-off,” said Kyle Rodda, senior financial markets analyst at Capital.com. In addition, Trump's 25 percent duties on Mexican and Canadian imports went into effect Tuesday, along with an increase in Chinese duties to 20 percent.

Investors will be focused on February's ISM Services Purchasing Managers' Index (PMI), which is due to be released on Wednesday. If the results are weaker than expected, this could lead to a weaker Dollar against the Pound Sterling (GBP).

Bank of England (BoE) Governor Andrew Bailey believes that a resurgence in inflation is not a concern. Meanwhile, Bank of England Deputy Governor Dave Ramsden said that the UK central bank should take a “cautious and gradual” approach to monetary policy amid uncertainty in the labor market and global trade.

Trading recommendation: BUY 1.2790, SL 1.2740, TP 1.2860

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