GBP Regains Ground Amid USD Weakness

The GBPUSD currency pair is regaining momentum, edging closer to 1.3270 during early Asian trading on Thursday, snapping a two-day losing streak. The US dollar is under pressure due to mounting uncertainty around former President Donald Trump’s trade strategies. His administration has reportedly engaged with 90 countries on tariffs, with plans to finalize tariffs on Chinese imports within two to three weeks. Trump also hinted at increasing the 25% tariff on Canadian car imports as part of efforts to strengthen domestic auto production.

This growing uncertainty has dampened market sentiment and weakened the Greenback. Meanwhile, speculation about a potential rate cut by the Bank of England in May is capping the Pound's gains. Markets have priced in an 82% probability of a BoE rate reduction, driven by the global economic ripple effects of ongoing trade tensions.

Key US economic indicators—such as Initial Jobless Claims, Durable Goods Orders, the Chicago Fed National Activity Index, and Existing Home Sales—are set to be released later Thursday. Meanwhile, Friday's UK Retail Sales report is projected to show a 0.4% decline for March after a 1.0% increase in February.

Technically, GBPUSD faces a pivotal test at the 200-hour moving average near 1.3252. A break below this level would signal renewed bearish pressure. Earlier attempts to bounce above the 100-hour moving average near 1.3324 failed to gain traction. The zone around 1.3293, last week’s highs, now acts as a near-term resistance and key risk level for short-sellers.

In equities, UK markets closed higher Wednesday, driven by gains in the Chemicals, Banking, and Auto sectors. The FTSE 100 climbed 0.93%, with standout performances from Croda International (+8.19%), Antofagasta (+7.03%), and Standard Chartered (+6.36%). On the flip side, losses were led by Reckitt Benckiser (-5.88%), Fresnillo (-5.20%), and Severn Trent (-2.86%).

Commodities also saw significant moves. Gold futures for June delivery fell 3.55% to $3,298.01 per ounce, while crude oil dropped 2.64% to $61.99 per barrel. Brent crude slipped 2.39% to $65.83. The US Dollar Index rose 0.79% to 99.47.

The GBP/USD pair continues to hover near 1.3325 after recovering from intraday lows of 1.3254. Immediate resistance lies at 1.3355, followed by stronger supply near 1.3416. A key trendline from April provides technical support around 1.3250. Despite mixed momentum, the broader trend remains bullish as long as this level holds. However, a break below the 50-day MA at 1.3260 could open the door for a further drop toward 1.3180–1.3200.

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