• GBP/USD hovered around three week low on Monday as investors assessed the trajectory of U.S. tariffs as well as domestic interest rates.
• Investors await updates on the UK’s fiscal outlook as Finance Minister Rachel Reeves and BoE Governor Andrew Bailey deliver the Mansion House speech on Tuesday.
• Britain's labour market cooled in June, with the biggest rise in job seekers since the COVID-19 pandemic, key data for the Bank of England.
• The BoE is widely expected to cut rates next month for the fifth time since last August, with markets pricing in an 89% chance of a 25 bps cut.
• UK inflation data, set to be released on Wednesday, is expected to offer important insights into the Bank of England’s future interest rate decisions..
• Immediate resistance is located at 1.3593(SMA 20), any close above will push the pair towards 1.3753(23.6%fib)
• Strong support is seen at 1.3445(38.2%fib) and break below could take the pair towards 1.3387(Lower BB).
Recommendation: Good to sell around 1.3490 with stop loss of 1.3560 and target price of 1.3420
