GBP/USD treaded water near 1.2900 on Tuesday.
Investors are broadly pulling volume out of the market as they await Trump tariffs.
President Trump is slated to finally announce his tariff packages on Wednesday.
GBP/USD flatlined on Tuesday, churning just above the 1.2900 handle as investors buckle down for the wait to US President Donald Trump’s long-awaited tariff announcements slated for Wednesday evening. At 1900 GMT on Wednesday, President Trump is expected to unveil his “reciprocal” tariff package that he has been threatening since taking office on January 20.
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Economic data has taken a firm back seat in the face of geopolitical uncertainty from still ambiguous trade policies from the White House. The Wall Street Journal reported on Tuesday that the United States Trade Representative Office may be preparing a last-minute alternative tariff proposal to present to Donald Trump in an effort to alleviate and streamline a lopsided pile of tariff threats from the US President over the past 71 days.
The US ISM Manufacturing PMI for March sank faster than expected, falling to 49.0 from 50.3 as businesses hunker down ahead of expected tariff announcements. Median market forecasts expected a print of 49.5 or better. The ISM Manufacturing New Orders Index also fell sharply for the second month in a row, declining to a two-year low of 45.2.
The release schedule on the UK side of the economic data docket remains light this week, but a fresh print of US Nonfarm Payrolls (NFP) labor figures are due later this week. This NFP release could be a major datapoint for markets as the US economy heads into a post-tariff economic environment, with March’s labor data set to act as a “bellwether” for the impacts of the Trump team’s tariff plans.
GBP/USD price forecast
GBP/USD has chalked in a firm consolidation phase just below the 1.3000 handle. Pound traders remain unwilling to push bids any higher, and Greenback flows are also dominating most of the marketscape. However, Cable short pressure also remains limited.
Bullish trendlines remain intact from January’s deep swing low at the 1.2100 price level, and momentum remains in favor of bidders as price action churns on the high side of the 200-day Exponential Moving Average (EMA) at 1.2725.
GBP/USD daily chart
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