{"id":18194,"date":"2025-03-12T10:10:20","date_gmt":"2025-03-12T10:10:20","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=18194"},"modified":"2025-03-12T10:10:20","modified_gmt":"2025-03-12T10:10:20","slug":"sterling-holds-firm-despite-u-s-tariff-shock","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/sterling-holds-firm-despite-u-s-tariff-shock\/","title":{"rendered":"Sterling Holds Firm Despite U.S. Tariff Shock"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image_fx_-2025-03-12T180840.550-1024x559.png\" alt=\"\" class=\"wp-image-18196\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>GBP\/USD rebounded to 1.2942<\/strong>, erasing early losses after testing a low of <strong>1.2913<\/strong>.<\/li>\n\n\n\n<li>Market uncertainty remains as the <strong>U.K. holds back on retaliatory measures<\/strong> against U.S. steel and aluminium tariffs.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The British pound remained <strong>resilient<\/strong> on Wednesday, recovering from early declines as markets assessed the impact of <strong>U.S. President Donald Trump\u2019s 25% tariff on steel and aluminium imports, <\/strong><strong><a href=\"https:\/\/t.co\/EUiw0anF7Q\">including those from the U.K.<\/a><\/strong>.<\/p>\n\n\n\n<p>After dipping to <strong>1.2913<\/strong>, <strong>GBP\/USD<\/strong> rebounded to <strong>1.2942<\/strong>, reflecting a cautious but steady sentiment. The pair reached an intraday high of <strong>1.2965<\/strong> before paring gains. The slight recovery suggests that traders are <strong>not yet pricing in <\/strong><strong><a href=\"https:\/\/t.co\/oBB2xdNg9F\">immediate economic retaliation<\/a><\/strong><strong> from the U.K.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The EU prepares to react to Trump&#39;s first tariff salvo hitting the bloc. Read the Brussels Edition <a href=\"https:\/\/t.co\/FDunhF98d9\">https:\/\/t.co\/FDunhF98d9<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1899705679893418494?ref_src=twsrc%5Etfw\">March 12, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>U.K. Business Secretary Jonathan Reynolds <strong><a href=\"https:\/\/www.newsbreak.com\/the-independent-517119\/3852045273206-uk-disappointed-at-us-tariffs-business-secretary-says\">expressed disappointment<\/a><\/strong> over the tariffs but confirmed that <strong>Britain will prioritise ongoing trade negotiations with the U.S. rather than retaliatory measures.<\/strong><\/p>\n\n\n\n<p>The euro also strengthened against the pound, with <strong>EUR\/GBP rising 0.1% to 0.8440<\/strong>, as investors sought relative safety in the euro amid heightened uncertainty.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The <strong>GBP\/USD<\/strong> pair is trading around <strong>1.29421<\/strong>, showing a <strong>0.02%<\/strong> gain on the session. The price reached a <strong>high of 1.29546<\/strong> and a <strong>low of 1.29135<\/strong>, with recent movements indicating a mild recovery after a brief pullback. The <strong>moving averages (5, 10, 30) suggest ongoing bullish momentum<\/strong>, while the <strong>MACD shows signs of a potential continuation to the upside<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/WhatsApp-Image-2025-03-12-at-17.41.13-1024x444.jpg\" alt=\"\" class=\"wp-image-18195\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: GBP\/USD holds gains near 1.2942, eyeing further upside, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WAhttps:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WAhttps:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WAhttps:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>If bullish momentum continues, <strong>resistance is seen at 1.29657<\/strong>, and a break above could push GBP\/USD toward the <strong>1.2980-1.3000 region<\/strong>. On the downside, <strong>support is near 1.2910<\/strong>, and a break below could lead to a retest of <strong>1.2880<\/strong>. Traders should monitor <strong>UK economic data, U.S. inflation figures, and central bank rhetoric<\/strong>, as they will play a key role in the pair\u2019s next move.<\/p>\n\n\n\n<p>Despite trade tensions, <strong>technical indicators suggest GBP\/USD remains stable<\/strong>, with the <strong>50-day moving average providing support<\/strong> and <strong>MACD showing a neutral momentum shift<\/strong>. Traders now await further signals on potential tariff adjustments or trade policy shifts from both Washington and London.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>GBP\/USD recovers to 1.2942 after early losses, holding firm despite U.S. tariffs on U.K. steel. Markets eye trade talks. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":18196,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[10],"class_list":["post-18194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-forex"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/18194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=18194"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/18194\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/18196"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=18194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=18194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=18194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}