• GBP/USD edged lower on Wednesday but remained near seven month high as investors awaited Bank of England policy meeting due on Thursday.
•Investors also turned their attention to tariff talks, with U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer set to meet China's economic tsar He Lifeng this weekend.
• The U.S. and Britain have made solid progress toward a trade deal that may include reduced tariff quotas on steel and autos, a UK official said Tuesday.
• The BoE is widely expected to cut rates a further 25 basis points to 4.25%, but the statement accompanying its decision will be closely watched by market participants.
• BoE policymakers have warned that Trump’s trade policies could hamper economic growth, though the effect on inflation remains uncertain.
• Immediate resistance is located at 1.3454(23.6%fib), any close above will push the pair towards 1.3496(Higher BB)
• Strong support is seen at 1.3267(38.2%fib) and break below could take the pair towards 1.3109(50%fib).
Recommendation: Good to buy around 1.3340, with stop loss of 1.3230 and target price of 1.3400
