GBPUSD: SELL 1.3230, SL 1.3250, TP 1.3140 | 12 May 2025

Event to pay attention today:

11:40 EET. GBP - Bank of England Governor Andrew Bailey is set to deliver a speech

GBPUSD:

The GBP/USD pair started Thursday with an early burst of gains, helped by the Bank of England (BoE) providing the market with a widely expected quarter-point rate cut. However, the bullish momentum supporting the Pound quickly evaporated as markets switched to trade news headlines from the United States (US). Investors are hoping for rapid progress on US trade deals that will allow the US to move away from its self-imposed tariff policy.

Market sentiment anchored on the high side and strengthened the US Dollar (USD) after the Trump administration announced an imminent US-UK (UK) trade deal that will allow the UK to avoid high ‘retaliatory’ tariffs on a permanent basis, which were due to come into effect on 9 July after President Trump temporarily refused to impose his own tariffs on ‘Emancipation Day’. However, 10 per cent tariffs will be imposed on all imports into the US from the UK, which could negatively impact market sentiment in the near term.

On key imports such as refined ethanol, the Trump administration has suspended tariffs entirely. The US has reportedly not imported purified ethanol from the UK for at least 15 years.

Trading recommendation: SELL 1.3230, SL 1.3250, TP 1.3140

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