Key events today:

18:00 UTC: USD – FOMC Meeting Minutes Release.

The pound is weakening toward the 1.3580–1.3600 range, reacting to another round of protectionism: the White House has confirmed that August 1 will be the final deadline for new tariffs, boosting demand for the dollar as a safe-haven asset. Market participants are taking profits on long GBP positions, fearing tighter trade conditions for the UK.

The negative sentiment is compounded by domestic factors. A review of social spending has cast doubt on the trajectory of British public finances and increased risks to the sovereign credit rating. Weak manufacturing PMI and stagnant retail sales indicate an economic slowdown, while the Bank of England is likely to keep its 5.50% rate unchanged through year-end, limiting the pound’s appeal.

The UK macroeconomic calendar is empty for the rest of the week, so the short-term dynamics of the pair will be driven by external factors: US tariff rhetoric and market reaction to the FOMC minutes. If demand for dollar assets strengthens and no positive domestic catalysts emerge, the pound remains vulnerable to a decline toward 1.3520.

Recommendations: SELL 1.3600, SL 1.3630, TP 1.3520.