GBPUSD

The GBP/USD pair has declined to the level of 1.2700 due to U.S. President Trump's statements on protectionist trade policies, and the deterioration in global risk perception has triggered a loss in the value of the Pound. The reduction of positions by institutional investors ahead of revisions in the UK's growth projections and the expected inflation data in the U.S. deepens the selling pressure on the pair. Although the Bank of England's cautious stance in its interest rate normalization process provides limited support to the Pound, a break of the critical support at 1.2700 is expected to accelerate sales towards the weekly support level of 1.2470 in the current macroeconomic uncertainty environment. If inflation data comes in higher than expected, the continuation of the dollar index's strength and the ongoing downward pressure on the GBP/USD pair are seen as likely scenarios.