GBP/USD Dancing While the Dollar Trips Over Tariffs

[kevin1]

Hey folks, Kevin here—full-time chart whisperer, part-time caffeine addict. Been scalping the forex jungle for a few years now, and when I see a setup with this much drama, I have to talk about it.

So, GBP/USD is strutting back up around 1.3630 in the Asian session after a bit of a stumble. What’s fueling the lift? The US Dollar’s taking a breather after Trump dropped his latest round of “surprise tariffs” like he’s hosting a reality show called Trade Wars: The Sequel.

We’re talking 25% tariffs on Japan and South Korea, 40% on Laos and Myanmar, and a whole bunch of 30-36% rates sprinkled across other countries. Trump also threw in a social media special—align with BRICS? Congrats, you get an extra 10% tariff. No exceptions. Classic.

Meanwhile, across the pond, the Pound’s still trying to keep it together despite some storm clouds. The UK’s got fiscal risks rising, and word on the street is that tax hikes might show up in the autumn budget. Plus, Deutsche Bank expects the BoE to roll out a 25 bps rate cut in August, with more possibly on the way.

So we’ve got a softening USD, a jittery GBP, and enough geopolitical spice to make this pair worth watching. I’m personally watching this climb with one eyebrow raised and a finger on the short trigger.

Anyone else catching this cable two-step? Let's talk positions.

"Still dodging fakeouts like it’s 2020."

Kevin1