No major events are expected today.

The GBP/USD pair remains weak, hovering near 1.3280 during the early Asian session on Wednesday. Comments from U.S. Treasury Secretary Scott Bessent hint at a thaw in U.S.-China trade tensions, fueling optimism in the markets and strengthening the U.S. dollar (USD) against the British pound (GBP).

On Tuesday, Scott Bessent stated that he expects a de-escalation in President Donald Trump’s trade war with China in the near future. He also noted that the tariff standoff with China cannot continue indefinitely and that the two largest economies will need to find ways to ease tensions.

Additionally, on Tuesday, Trump appeared to back off from his threats to fire Federal Reserve Chairman Jerome Powell after days of increasing criticism over Powell’s refusal to lower interest rates. The optimism and easing trade tensions are providing some support for the U.S. dollar.

Traders will closely monitor developments around U.S.-UK trade negotiations. On Tuesday, the Wall Street Journal reported that the Trump administration is preparing its terms for trade talks with the UK, expecting London to lower tariffs and other non-tariff barriers on a wide range of American goods.

According to sources familiar with the draft document circulated by the Trump administration this week outlining its trade objectives with the UK, the U.S. will seek to reduce UK tariffs on cars from 10% to 2.5%.

Recommendation: SELL 1.3300, SL 1.3340, TP 1.3210.