Key events today:

18:00 UTC: USD – Release of the FOMC meeting minutes.

On Tuesday, the GBP/USD pair retraced recent gains from the 1.3600 level after reaching new multi-year highs earlier this week.

The likelihood of the Bank of England (BoE) cutting rates as frequently as expected earlier this year has decreased, contributing to the pound sterling’s rise to its highest levels against the US dollar since early 2022.

US President Trump recently suggested on social media the introduction of additional 50% tariffs on all imports from the European Union (EU) starting June 1. However, he has since withdrawn the threat, following a now-familiar pattern for investors, and postponed the tariff deadline to July 9.

The rest of the week will be filled with important US data. On Wednesday, the minutes from the latest Federal Reserve (FOMC) meeting will be released, followed by US Q1 GDP growth data on Thursday. The week will conclude with Friday’s release of the US Personal Consumption Expenditures (PCE) Price Index for April.

Recommendations: SELL 1.3425, SL 1.3525, TP 1.3225.