Key events today:

12:15 UTC: USD – ADP Employment Change.

The GBP/USD pair is trading with a slight increase near 1.2790 in early European trading on Wednesday. The US Dollar (USD) remains near a three-month low amid concerns over slowing US economic growth and the impact of tariffs.

“Concerns about weakening US and global economic activity are evident in the markets, with cyclical factors driving the sell-off,” said Kyle Rodda, Senior Financial Markets Analyst at Capital.com.

Additionally, on Tuesday, Trump’s 25% tariffs on Mexican and Canadian imports took effect, along with an increase in Chinese tariffs to 20%.

Investors will be watching the ISM Services PMI for February, set to be released on Wednesday. If the results are weaker than expected, it could lead to a decline in the US Dollar against the British Pound (GBP).

Bank of England (BoE) Governor Andrew Bailey believes the resurgence of inflation is not a major concern. Meanwhile, BoE Deputy Governor Dave Ramsden stated that the UK central bank should adopt a “cautious and gradual” approach to monetary policy amid labor market and global trade uncertainties.

Recommendation: Buy 1.2790, SL 1.2740, TP 1.2860.