GBP/USD Surges to 2025 High as Tariff Concerns Pressure USD

GBP/USD Surges to 2025 High as Tariff Concerns Pressure USD

GBP/USD climbed sharply, reaching a fresh 2025 high at 1.2768 in NorAm trading, buoyed by falling U.S. Treasury yields and heightened market concerns related to the Trump administration’s tariff actions. The persistent risk-off sentiment, coupled with retaliatory measures from U.S. trade partners, has pushed U.S. yields lower, weakening the dollar broadly. While the UK is not directly targeted by these tariffs, indirect impacts from a slowdown in global trade could eventually weigh on British economic growth, adding caution to the bullish outlook.

From a technical viewpoint, GBP/USD remains firmly bullish, having decisively broken key resistance levels, including the recent high at 1.2752. Immediate resistance now sits at 1.2786 (200-day moving average), a critical technical level. A sustained close above the 200-DMA would open the door for further gains toward the December 6 high at 1.2811, with an eventual target at psychological resistance around 1.30. Short-term supports are located at 1.2731 (rising 10-hour moving average), followed by stronger levels at 1.2679 (Tuesday’s intraday low) and 1.2569 (February 28 low).

Looking ahead, GBP/USD’s upward momentum could remain intact as long as tariff-induced risk aversion keeps Treasury yields suppressed. UK-U.S. rate differentials, which continue to favor sterling, offer additional support, underpinning bullish sentiment. However, traders will remain attentive to the broader impact of global trade tensions. A meaningful slowdown in global economic activity or deteriorating trade relationships could eventually temper the pound’s gains, suggesting the bullish trajectory will depend heavily on maintaining support above 1.2731.