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MENAFN- Daily Forex)
As we predicted and confirmed, the attempts of the GBP/USD currency pair to recover remain weak and await further stimulus. The rise of the British Pound against the US Dollar comes amid indications that Donald trump is adopting a more measured approach to tariffs. However, analysts warn that this is merely a truce, not a change in direction.
Will the Sterling rise beyond the resistance of 1.24?
According to reliable trading platforms, the GBP/USD
exchange rate has formed a base above 1.2160 and a short-term rise to the resistance of 1.24 may carry it in the coming days. According to trades, the weakness of the US dollar is the current driving force in the global foreign exchange market, reflecting investor relief that Donald Trump is preparing to pursue a more cautious tariff agenda. Overall, it is certain that US tariffs are coming, but the fire and brimstone he promised in the campaign has given way to a mixed message from Trump, who has tasked federal agencies with taking a closer look.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Dollar price fluctuation with selling pressure
Recently, the most supportive outcome for the US dollar included Trump's signal to impose comprehensive tariffs on imports, which would have raised inflation and interest rates in the United States. Also, it would have punished currencies belonging to major exporters. Instead, Trump tasked federal agencies with studying current trade imbalances and tariff scenarios, asking them to report back on April 1st. At this stage, key names such as Jameson Greer will be installed in the government and will be able to lead the new agenda.
According to analysts, changes to US tariffs are expected to be announced on or shortly after April 1 and take effect a month or two later. The bottom line is that changes to tariff policy are coming. But the timeline means there is plenty of time for companies (both US and foreign) and foreign governments to lobby for exemptions.
Recently, the foreign exchange“FOREX” market has built up a risk premium in currency valuations following Trump's victory in November, contributing to new declines in the Pound Sterling against the Dollar and other US dollar exchange rates. With a clearer path to less severe trade outcomes, some of this premium has been priced in, contributing to the rise of the Pound Sterling against the Dollar.
However, tariffs are still coming, and analysts say it is too early to call an end to the US dollar's advance. Experts believe that delayed tariffs are not cancelled tariffs by any means. This supports JPMorgan's view that bouts of US dollar weakness will be "fading." At the same time, Deutsche Bank analysis finds that financial markets may still be underestimating the impending change that Trump will bring. Bank analysts stated, "Our conclusions are not optimistic: Despite recent moves, the market is not pricing in the sustained total divergence between the United States and the rest of the world, nor a major trade war."Trading Tips:
Dear TradersUp follower, the pound has British problems that may affect its gains even if the US dollar declines in the coming days. The selling strategy is still the strongest Analysis for the GPB/USD pair today:
Dear reader, according to the GBP/USD daily chart trades, the upward trend remains weak and awaits more stimulus. Technically, the resistance of 1.2570 will be the key to the bulls' control of the trend and thus the readiness for stronger gains. Also, it confirms the beginning of the formation of an opposite upward channel. On the same timeframe, the support levels of 1.2260 and 1.2180 will remain the most important for the strength of the bears' control and thus the readiness to move towards the psychological support level of 1.2000. Which in turn will move the technical indicators towards strong oversold levels.
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