GBP/USD climbs as the dollar stalls amid pivotal trade uncertainty

crypthub

about 2 hours ago

GBP/USD Surge

GBP/USD rose ~1.8% in five sessions, breaking key resistance. The 50‑day moving average now supports the pair near 1.2850. Trading volume jumped 35% versus the prior week, indicating strong conviction. London trading saw the pound hold firm despite domestic challenges.

US Dollar Weakness

US dollar index slipped for three straight days as trade‑policy doubts grew. Export data revealed a wider trade deficit and weaker manufacturing, pressuring the greenback. Fed remarks added uncertainty, prompting investors to trim dollar exposure across assets. The combined effect left the dollar broadly soft against major currencies.

Outlook and Implications

Analysts expect the pound to stay modestly strong if trade talks remain positive. Key technical barriers lie at 1.3050 resistance and 1.2750 support. Businesses are revising hedging plans, while UK bonds attract foreign inflows and US equities show mixed reactions. Prudent risk management and monitoring of trade negotiations, PMI surveys, and central‑bank cues are advised.