The GBPUSD rally is in question after the pair hit resistance at the time of the trade deal with the United States and Britain.
The GBPUSD rallied in 2025 from lows below 1.2200 to highs near 1.34340. That has proven to be a barrier on the daily chart and could be the top for the GBP.
The UK has signed what is being touted as a historic trade deal with the United States, and investors are hoping that it opens the door to smoother relations with the EU and China. British Chancellor Rachel Reeves described it as a “good deal” and the country’s Treasury Minister Darren Jones said that 150,000 jobs had been “protected” but that the government would “continue to negotiate in other sectors”.
European Commission President Ursula von der Leyen may be the next visitor to the U.S. as the region deals with 20% tariffs, but she said that she won’t visit the White House unless an agreement to cut rates is made.
“If I go to the White House, I want to have a package we can discuss,” Reuters reported.
“It has to be concrete and I want to have a solution that we both agree on.”
The UK deal has been seen as a historic move and a peaceful end to weeks of tariff chaos. Now the focus is on a coming meeting with China and these deals could put the focus back on the economic situation and see a resurgence in the U.S. dollar.
The rally in gold and the anti-dollar sentiment has been driven by the belief that the U.S. dollar’s hold on global markets is coming to an end.
Professor Henry Gao, a US-China specialist from Singapore Management University said that “in the short-term China might be able to stand the trade war pressure better because of the nature of the regime.”
“In the long term, the US may be more resilient… China may want to reach some sort of deal with the US sooner rather than later,” he added.
The Governor of the Bank of England has also added some comments after the U.S. deal, saying that he hopes the UK can “rebuild” trade relationships with the EU after striking a trade deal with the United States.