- The Pound Sterling hovers near 1.2500, caught between quiet UK economic updates and global trade tensions.
- US Dollar strength resurfaces, supported by safe-haven flows ahead of the Federal Reserve’s rate decision.
- Investors assess easing tariff concerns and shifting sentiment as key drivers for the currency pair.
GBP/USD Stalls Near 1.2500 Amid Mixed Market Sentiment
The GBP/USD pair remained range-bound on Monday, fluctuating near the psychological level of 1.2500 as broader market flows into and out of the US Dollar (USD) dictated price action. With a quiet week on the UK economic calendar, attention has shifted to global trade tensions and the upcoming Federal Reserve (Fed) rate decision, leaving Pound Sterling (GBP) traders with little domestic guidance.
Pound Sterling Rises as US Dollar Retreats on Eased Tariff Fears
The Pound Sterling recovered its intraday losses and climbed above 1.2500 during Monday’s North American session as the US Dollar softened. The retreat in USD came after markets absorbed news that US President Donald Trump walked back threats of imposing 25% tariffs on Colombia, alleviating some trade war concerns.
GBP/USD Price Outlook: Initial Support at 1.2350
The GBP/USD pair faced selling pressure around 1.2450 during early European trading on Monday as renewed USD strength, driven by safe-haven flows, weighed on the pair. Key support is seen near 1.2350, with resistance firmly at 1.2500.
